Swiggy’s debut on Dalal Street followed the trend of recent big IPOs, listing with a modest 8% premium over its issue price. Although the company’s consolidated losses and break-even projections of 2-3 years out are causing some investor hesitation, the listing saw Swiggy shares rise 9% to Rs 449, pushing its market cap beyond Rs 1 lakh crore.
The new listing drew contrasting opinions from brokerage firms. Macquarie issued an underperform rating with a target price of Rs 325, warning that Swiggy’s path to profitability could be challenging, predicting EBIT break-even only by FY28. On the other hand, JM Financial recommended a buy with a target price of Rs 470, citing Swiggy’s potential to benefit from strong brand recognition and operational leverage in a competitive but duopolistic market.
With reported net losses since incorporation, including a Rs 2,350 crore loss in FY24, Swiggy’s business model remains a cautious play for risk-tolerant investors amidst concerns about cash flow and competition.
