Swiggy shares climbed 10% from record low level; here is why

Shares of Swiggy Ltd staged a sharp rebound on Monday, rising 9.27 per cent to hit a high of Rs 333.65. At this price, it has moved up 10.09 per cent from its all-time low level of Rs 303.05, seen in the previous intraday trading session.

Today's uptick came after the company notified that its quick food delivery service, Bolt, is now operational in over 500 cities nationwide. "Launched in October 2024, Bolt has surged across metros as well as Tier 2 and Tier 3 towns, powered by a network of over 45 thousand restaurant brands. In less than 6 months of being launched, Bolt already powers more than 1 in every 10 Food delivery orders delivered by Swiggy," it stated.

Bolt ensures the most-loved dishes reach customers hot and fresh in 10 minutes, it added. "It combines smart backend optimization with a curated menu of quick-serve, high-demand items that have minimal or no preparation time. With delivery radius limited to 2 km, the service maintains quality while ensuring reliability," Swiggy further stated.

"For Swiggy, the format is a powerful consumer acquisition and retention lever—with new users acquired through Bolt showing 4-6 per cent higher monthly retention than the platform average. Importantly, delivery partners are not informed that an order is a Bolt one, and no incentives are tied to delivery speed, ensuring safety-first execution at every touchpoint," the firm also said.

In addition, the stock came under the watchlist of market participants post Eternal's (formerly Zomato) announcement of the closure of its 15-minute food delivery service Zomato Quick and meal service Everyday. "We are actually shutting down both these initiatives as we are not seeing the path to profitability in these without compromising on customer experience. The current restaurant density & kitchen infrastructure is not set up for delivering orders in 10 minutes which leads to inconsistent customer experience. As a result, we did not see any incrementality in demand while we ran Quick as an experiment for a few months," said Eternal CEO Deepinder Goyal.

Technically, Swiggy's recently-listed scrip traded higher than the 5-day simple moving average (SMA) but lower than the 10-day, 20-, 30-, 50-day and 100-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 68.03. A level below 30 is defined as oversold while a value above 70 is considered overbought.