Swiggy Share Price Hits Seven-Month High After Nomura Initiates Coverage With 25% Upside
Swiggy share price advanced 4.53% to Rs 458.95 apiece, the highest level since Feb 3.
Swiggy Ltd.'s share price rallied to a seven-month high in Monday's session as Nomura started coverage on the company with a buy rating and 25% upside potential projection. The brokerage has given a target price of Rs 550.
The food delivery industry is moving towards a 15–20% steady growth rate and improving Ebitda margin due to scale benefits. Improving unit economics and rising penetration and usage are also contributing to the growth. The food delivery business is a cash generator for Swiggy Ltd.
Swiggy's constant product innovations are helping it gain market share against Zomato. Nomura is expecting Swiggy's market share will likely increase by 100 basis points in financial year 2026. In the long term, as the scale builds, the contribution margin and adjusted Ebitda of the two players will converge.
Swiggy share price advanced 4.53% to Rs 458.95 apiece, the highest level since Feb 3. It was trading 0.99% higher at Rs 443.5 apiece as of 9:40 a.m., compared to a 0.41% advance in the NSE Nifty 50 index.
The stock declined 2.58% in 12 months and 17.28% on a year-to-date basis. Total traded volume so far in the day stood at 3.2 times its 30-day average. The relative strength index was at 63.11.
Out of 27 analysts tracking the company, 22 maintain a 'buy' rating, three recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 4.6%.
