Swiggy Share Price Surges As Brokerages Remain Positive Despite Weak Q2 Results
Swiggy share price rose as much as 6.57% during the day to Rs 534.80 apiece on the NSE.
Shares of food delivery major Swiggy Ltd. rose as much as 6.5% in early trade on Wednesday after the company reported its first earnings since listing on Nov. 13. Despite reporting a widening of losses, brokerages remained optimistic.
Swiggy's loss increased to Rs 626 crore in the second quarter of this fiscal year, up from Rs 611 crore in the last quarter.
Motilal Oswal Financial Services, Nuvama Institutional Equities and CLSA have shared their views on the company's September quarter performance.
CLSA has an 'outperform' rating and noted that its results show gap with Zomato has stopped widening, but remains. Motilal Oswal called its results an 'appetising start' and remains 'neutral' on the stock. "Swiggy's food delivery business is on a strong footing and is part of a stable duopoly," the note said. Nuvama noted the company's plan to increase its dark store count.
Swiggy Q2 FY25 Highlights (Consolidated, QoQ)
Revenue up 12% to Rs 3,601 crore versus Rs 3,222 crore.
Ebitda loss at Rs 554 crore versus loss of Rs 544 crore.
Net loss at Rs 626 crore versus loss of Rs 611 crore.
Quick commerce revenue at Rs 490 crore versus Rs 374 crore.
Food delivery revenue at Rs 1,577 crore versus Rs 1,518 crore.
Supply chain and distribution revenue at Rs 1,452 crore versus Rs 1,190 crore.
Swiggy Share Price Today
Swiggy share price rose as much as 6.57% during the day to Rs 534.80 apiece on the NSE. It was trading 3.29% higher at Rs 518.35 apiece, compared to an 0.15% advance in the benchmark Nifty 50 as of 9:28 a.m.
It has risen 13.32% in the last 12 months. The relative strength index was at 64.85.
Four out of the six analysts tracking Swiggy have a 'buy' rating on the stock, one recommends a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 12.8%.
