Swiggy shares: Post 45% rally in four months, should you still bet on the food delivery stock?
Swiggy stock: The shares of the food delivery firm slipped to Rs 305.35 on May 2, 2025. Since then, the stock of the food delivery firm has been mostly in an uptrend.
- Sep 9, 2025,
- Updated Sep 9, 2025 9:23 AM IST
Shares of Swiggy have risen 45% from their low reached on May 2, 2025. The shares of the food delivery firm slipped to Rs 305.35 on May 2, 2025. Since then, the stock of the food delivery firm has been mostly in an uptrend. Swiggy shares are expected to rise further, according to global brokerage CLSA.
The brokerage has assigned an outperform call on the stock with a price target of Rs 509. The margin guidance for quick commerce (QC) business is unchanged. As per management, food delivery has 18%-20% medium-term GOV growth potential & a 60 bps annual margin expansion runway, said CLSA.
CLSA is not alone in assigning a positive rating to the Swiggy stock.
Nomura has initiated coverage on the company with a 'Buy' rating. The global brokerage fixed a target price of Rs 550 per share for the food delivery firm.
Nomura believes Swiggy's food delivery business is entering a "steady profitability trajectory," and is expected to continue as a "key cash generator." The firm also noted that "while the company's quick commerce vertical still holds a challenger position, profitability in this segment is also likely to improve."
"Swiggy is well funded to scale its quick commerce business further, and therefore the risk of equity dilution remains low, "said Nomura. However, it cautioned that "a broader macroeconomic slowdown could pose risks to growth assumptions in the online food delivery space." Another brokerage IIFL is bullish on the food delivery stock with a target price of Rs 535.
IIFL said India’s second largest food tech company may deliver 29 per cent revenue CAGR over FY25-28 and become Ebitda/PAT positive by FY27/28. Swiggy is potentially 7/5 quarters behind Eternal in food delivery (FD) and 3/8 quarters behind in quick commerce (QC) on GOV/Ebitda margins respectively.
"We see this as a function of slower execution in the past rather than a competitive disadvantage. We value Swiggy’s FD business at $8.1 billion an Zomato at $13.9 billiom. With Swiggy’s mcap at $12 billion, its QC business (including other verticals) implies a value of $3.9 billion, trading at a deep discount of 82 per cent to Blinkit despite being only 50 per cent smaller," IIFL Securities said.
According to the brokerage, successful execution in QC could provide asymmetric upside in the stock, with easing competition in QC and market share gains in FD as key catalysts.
In the current session, Swiggy shares were set to open higher. In the previous session, the stock closed marginally higher at Rs 442.85.
Shares of Swiggy have risen 45% from their low reached on May 2, 2025. The shares of the food delivery firm slipped to Rs 305.35 on May 2, 2025. Since then, the stock of the food delivery firm has been mostly in an uptrend. Swiggy shares are expected to rise further, according to global brokerage CLSA.
The brokerage has assigned an outperform call on the stock with a price target of Rs 509. The margin guidance for quick commerce (QC) business is unchanged. As per management, food delivery has 18%-20% medium-term GOV growth potential & a 60 bps annual margin expansion runway, said CLSA.
CLSA is not alone in assigning a positive rating to the Swiggy stock.
Nomura has initiated coverage on the company with a 'Buy' rating. The global brokerage fixed a target price of Rs 550 per share for the food delivery firm.
Nomura believes Swiggy's food delivery business is entering a "steady profitability trajectory," and is expected to continue as a "key cash generator." The firm also noted that "while the company's quick commerce vertical still holds a challenger position, profitability in this segment is also likely to improve."
"Swiggy is well funded to scale its quick commerce business further, and therefore the risk of equity dilution remains low, "said Nomura. However, it cautioned that "a broader macroeconomic slowdown could pose risks to growth assumptions in the online food delivery space." Another brokerage IIFL is bullish on the food delivery stock with a target price of Rs 535.
IIFL said India’s second largest food tech company may deliver 29 per cent revenue CAGR over FY25-28 and become Ebitda/PAT positive by FY27/28. Swiggy is potentially 7/5 quarters behind Eternal in food delivery (FD) and 3/8 quarters behind in quick commerce (QC) on GOV/Ebitda margins respectively.
"We see this as a function of slower execution in the past rather than a competitive disadvantage. We value Swiggy’s FD business at $8.1 billion an Zomato at $13.9 billiom. With Swiggy’s mcap at $12 billion, its QC business (including other verticals) implies a value of $3.9 billion, trading at a deep discount of 82 per cent to Blinkit despite being only 50 per cent smaller," IIFL Securities said.
According to the brokerage, successful execution in QC could provide asymmetric upside in the stock, with easing competition in QC and market share gains in FD as key catalysts.
In the current session, Swiggy shares were set to open higher. In the previous session, the stock closed marginally higher at Rs 442.85.