Swiggy share price jumps 6% as CLSA initiates ‘outperform’ rating on the stock, sees 32% upside

Swiggy share price: Global brokerage firm CLSA has become the latest to join the growing list of analysts optimistic about food delivery giant Swiggy. The firm has initiated an “outperform” rating on Swiggy’s stock, setting a target price of ₹708, which suggests a potential upside of nearly 32%.

Post CLSA’s initiation report, the food delivery to quick commerce stock climbed as much as 5.6 per cent to its day’s high of ₹567.80. Swiggy is now trading nearly 38 per cent higher than its IPO price of ₹412, and is just 1.5 per cent away from its all-time high of ₹576.95, scaled on December 5.

Meanwhile, it has advanced over 45 per cent from its 52-week low of ₹390.70, hit on the listing day. This robust performance underscores strong investor interest in Swiggy’s long-term growth story.

Swiggy’s ₹11,327.43 crore IPO, which was open for subscription from November 6 to November 8, attracted considerable attention from institutional and retail investors alike, further establishing its presence in the market.

Swiggy shares made a decent stock market debut on November 13 as the stock listed with a 7.7 per cent premium at ₹420 as against the issue price of ₹412 on the NSE.

CLSA’s Perspective

According to CLSA, Swiggy operates in a massive total addressable market (TAM) spanning food delivery and quick commerce, having immense growth potential. CLSA noted that Swiggy could see improved execution with accelerating growth and profitability.

CLSA estimates food delivery and quick commerce to have a FY27 TAM of $16 billion and $27 billion, respectively. “With food delivery being a two-player market and quick commerce likely dominated by three players, Swiggy has large headroom for growth in both categories. We see Swiggy’s GOV and revenue to grow at a CAGR of 43% and 32% in FY24-27,” CLSA said.

While the brokerage acknowledged Swiggy’s position as the second-largest player in food delivery, trailing Zomato, it emphasised that this valuation gap is well-reflected in Swiggy’s stock price. It said the market is too big for a single player and thus sees enough opportunity for Swiggy to thrive.

Bullish calls on Swiggy

Swiggy’s promising outlook has been reiterated by several other brokerages, all of whom are optimistic about the company’s ability to capitalise on robust industry tailwinds.

JM Financial retained a ‘Buy’ rating on Swiggy shares and revised its target price for March 2026 to ₹550 per share, up from ₹470 earlier. JM Financial continues to value Swiggy’s food delivery business at a 45x EV/FY27E Adjusted EBITDA multiple.

For Instamart, Swiggy’s quick commerce arm, the brokerage raised its valuation to 1.75x EV/FY27E GOV multiple from 1.25x, citing improved growth profiles and positive contribution margin profitability. This adjustment reflects the brokerage’s increased confidence in Swiggy’s long-term potential.

Motilal Oswal (MOSL) highlighted Swiggy’s “all-in-one app” strategy, which it believes enables the company to achieve strong cross-utilization across services and drive better operational efficiencies. While noting that Zomato leads the sector, MOSL emphasised Swiggy’s potential to leverage robust hyperlocal delivery industry trends.

Swiggy Q2 results

Food delivery aggregator Swiggy reported a net loss of ₹625.5 crore for the September quarter, marking an improvement from the ₹657 crore loss posted in the same period last year. The loss for the previous quarter ended June stood at ₹611 crore.

Revenue grew significantly, up 30 per cent year-on-year to ₹3,601 crore, compared to ₹2,763 crore in the same quarter last year and ₹3,222 crore in the June quarter.

In its post-earnings investor presentation, the company said that is projecting a break-even by the third quarter of FY26 and an adjusted EBITDA break-even by the July-September quarter of financial year 2025.

Swiggy has demonstrated resilience and robust growth potential in the highly competitive food delivery and quick commerce markets. With favourable analyst recommendations, including CLSA’s optimistic outlook, the stock continues to gain traction among investors.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.