Swiggy shares rise nearly 2% after Axis Capital initiates ‘buy’ rating
Swiggy shares jump 2 percent as Axis Capital sets Rs 640 target, highlighting growth in food delivery and quick commerce markets.
Swiggy shares climbed nearly 2 percent to touch a day’s high of Rs 543.05 on the BSE after Axis Capital initiated coverage with a ‘buy’ rating and a target price of Rs 640. This implies a potential upside of 20 per cent from the stock's closing price on Friday.
Brokerage sees long-term potential
Axis Capital highlighted Swiggy as a compelling investment opportunity, positioning it as India’s second-largest player in food delivery and quick commerce (Q-com). “The food delivery and Q-com sectors remain underpenetrated, offering a long growth runway,” the brokerage noted in its report.
Swiggy’s focus on expanding its quick commerce footprint is expected to boost its gross order value (GOV) and revenue growth. Alongside, improved cost management and strategic innovation are likely to help the company sustain its competitive edge. The strengthened leadership team further supports Swiggy's ability to navigate market challenges effectively.
Block deal activity
In early trade, approximately 11.1 lakh Swiggy shares changed hands in a block deal. However, the details regarding the parties involved in the transaction remain undisclosed.
Performance since listing
Swiggy debuted on the exchanges in November, with a listing price of Rs 420 on the NSE and Rs 412 on the BSE. Since its listing, the stock has surged by 30 per cent on the NSE and 32 per cent on the BSE, reflecting robust investor interest.
Technical outlook
Swiggy’s stock is currently trading above all major exponential moving averages, signalling strong bullish momentum. The relative strength index (RSI) is oscillating near 61, indicating that the stock still has room for further gains without entering overbought territory.
Conclusion
With a bullish outlook from Axis Capital and consistent growth in its key businesses, Swiggy is well-positioned to capitalize on the expanding opportunities in the food delivery and quick commerce markets. Investors may find value in the stock as it continues to deliver strong performance post-listing.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
11:02 AM IST