New Delhi: Even as the stock market is under pressure, Bernstein has initiated a Buy rating on Swiggy shares. The global brokerage firm has given “outperform” rating on Swiggy and has set a target price of Rs 635 per share for it, which is around 25 per cent upside from the current level.
Bernstein described Swiggy as a big player in India’s “convenience economy”. It also stated that Swiggy shares are currently at fair valuation and there is a possibility of rating improvement. After rising over 6 per cent on January 9, Swiggy share price dropped around 2.50 per cent to Rs 494.45 apiece at 11:10 am on January 10.
Swiggy shares made their debut on stock market on November 13, 2204 at Rs 494.30 apiece. The stock touched a high of Rs 597.45 on December 20. However, since then the scrip declined.
Swiggy released its first quarterly earnings post listing on market. In its results for the quarter and half year ended September 30, 2024, Swiggy’s reported its overall Gross Order Value (GOV) increased 30 per cent year on year to reach Rs 11306 crore, while the consolidated adjusted EBITDA loss of Rs 341 crore represented a reduction in the loss by 30 per cent YoY. Platform Average Monthly Transacting Users (MTU) increased 19.2 per cent YoY to 17.1 million.
On the BSE website, Swiggy’s Mcap stood at Rs 1,10,601.68 crore, however, PE/PB and ROE ration was not mentioned.
The food delivery aggregator has launched an initiative to redistribute surplus food from restaurant partners. Swiggy on January 9 launched the ‘Swiggy Serves’ initiative to reduce food waste across its value chain and combat hunger.
The company’s initiative will ensure that surplus food from its restaurant partners is picked up and redistributed to underserved communities. Swiggy and volunteer-driven organisation Robin Hood Army (RHA) have joined hands for the initiative.
Speaking at the launch, Rohit Kapoor, CEO, Swiggy Food Marketplace shared, “Currently, we are live in 33 cities and we plan to take this initiative to more cities. This isn’t just about reducing waste, it’s about creating a meaningful impact, ensuring that no meal goes waste.” “Through this collaboration, the two organisations have set an ambitious goal of providing 50 million meals by 2030, by leveraging technology to re-imagine food redistribution,” Swiggy said in a statement.
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