Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strong food delivery performance and strategic restructuring, despite challenges in quick commerce.
Basis of our Recommendation
Swiggy demonstrates strong growth in its food delivery segment, supported by improved margins and strategic restructuring aimed at enhancing operational flexibility. However, the company faces challenges in its quick commerce division due to competitive pressures and rising costs, which may impact overall profitability. The outlook remains cautiously optimistic with a focus on disciplined growth and profitability.
Why We Like This Stock
- Strong growth in food delivery exceeding expectations
- Improved margins and profitability in the food delivery segment
- Strategic restructuring to enhance operational flexibility
Things To Watch Out For
- Competitive pressure impacting quick commerce profitability
- Rising fuel costs affecting overall margins
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 11,247 | 15,227 | 23,053 | 29,433 | 36,773 |
| Profit Before Tax (Cr.) | -2,304 | -3,108 | -4,144 | -2,286 | -2,689 |
| PBT Margin | -20.5% | -20.4% | -18.0% | -7.8% | -7.3% |
| Net Profit (Cr.) | -2,304 | -3,108 | -4,144 | -1,714 | -2,017 |
| EPS | -8.8 | -11.9 | -15.9 | -6.6 | -7.7 |
Company Overview
Show Company Profile
Swiggy Limited operates Swiggy, a platform to browse, select, order, and pay for food delivery in India. The company operates through food delivery, quick commence, out-of-home consumption, supply chain and distribution, and platform innovation segments. It offers grocery and household items delivery services through Swiggy Instamart platform; restaurant reservation services through Dineout platform; and events bookings services through SteppinOut platform. The company also provides product pick-up and dropoff services through Genie platform and hyperlocal commerce services through Swiggy Minis platform. In addition, it engages in organizing and transporting goods, developing systems to manage transportation, and maintaining an online platform for connecting transports to avail transportation services. Swiggy Limited was incorporated in 2013 and is based in Bengaluru, India.