American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Why analysts see Indian food delivery giant Swiggy’s shares surging up to 46%

by admin January 10, 2025
January 10, 2025
Why analysts see Indian food delivery giant Swiggy’s shares surging up to 46%

Indian food delivery giant, Swiggy’s share price has had a rough start to the new year.

Since the start of 2025, the stock has corrected around 10% but still trades above its IPO price of ₹390.

However, analysts at ICICI Securities think the stock can turn things around.

Swiggy share price target

ICICI Securities initiated coverage on the stock with a “buy” rating and a price target of ₹740. The target reflects an over 46% upside from the stock’s last closing price of around ₹507.

The brokerage also has a “buy” rating on Swiggy’s competitor and market leader Zomato.

Earlier in the week, global research Bernstein had initiated coverage on the stock with a “buy” rating and a target price of ₹635.

Swiggy’s comeback

ICICI Securities highlights a growing preference for Swiggy among restaurant partners, as revealed by their survey data.

Swiggy has demonstrated strong execution in initiatives like Swiggy BOLT (a 10-minute food delivery offering) and Swiggy BLCK (a premium loyalty program).

According to management, BOLT now contributes approximately 9% of Swiggy’s food delivery Gross Order Value (GOV), with 200–300 basis points of this attributed to fresh demand, while the remainder reflects replacement demand.

This additional demand could support market share gains for Swiggy in the near term, the analysts added.

In the quick commerce segment, ICICI Securities believes that Swiggy and other leading incumbents have established a significant advantage through the rapid expansion of their dark store footprint.

This strategic move creates a high entry barrier for new players.

Projections suggest that the top three incumbents could control over 75% of India’s feasible dark stores by FY26, limiting the scope for disruption by new entrants.

ICICI Securities sees a favorable risk-reward ratio of 3.8:1 for Swiggy.

In their bull-case scenario, the stock is expected to reach ₹850, while the bear-case scenario implies a price of ₹415. This indicates significant upside potential, driven by Swiggy’s execution strength and market leadership in quick commerce.

Legal trouble brewing for Swiggy, Zomato

The National Restaurant Association of India (NRAI) plans to take legal action against food delivery giants Zomato and Swiggy, accusing them of monopolistic practices.

The dispute stems from the companies’ expansion into 10-minute delivery services through separate apps, such as Blinkit Bistro and Swiggy Snacc. NRAI claims this shift transforms the platforms from neutral marketplaces into direct competitors to restaurants.

This move follows an existing antitrust case NRAI filed with the regulator, alleging anti-competitive practices by Zomato and Swiggy.

The introduction of private labels—products sold under the platforms’ brand names—has intensified concerns.

These labels typically offer higher profit margins and are priced more competitively than established brands, potentially undermining third-party sellers on the platforms.

The post Why analysts see Indian food delivery giant Swiggy’s shares surging up to 46% appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Could Alzheimer’s treatment drugs be the next big investor opportunity after obesity pills?
next post
Accenture stock price has catalysts after the robust TCS earnings

Related Posts

Red alert: Donald Trump’s trade war sends stocks...

April 4, 2025

Walgreens plans store closures as CEO says consumers...

June 29, 2024

Sensex, Nifty50 rise 0.6% as China markets rally;...

October 8, 2024

Elon Musk’s AI startup now valued at $24...

May 29, 2024

What were the most-searched money topics of 2024?...

January 1, 2025

The new class war: A wealth gap between...

May 1, 2024

Pandora stock plunges as Trump tariffs on Thailand...

April 5, 2025

Asia markets mixed as Wall Street slides; Japan’s...

February 26, 2025

Boeing and Alaska Airlines point fingers at each...

March 16, 2024

Dollar dominates as Powell’s hawkish stance fuels market...

November 16, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,012)
    • Investing (2,455)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved