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CLSA has ascribed a price target of ₹708 for Swiggy, which is the highest on the street for the company and implies a potential upside of 31% from Monday’s closing levels.
Swiggy is riding the quick-commerce highway, according to CLSA, who believes that the company has a large and growing Total Addressable Market (TAM), along with a clear early-mover advantage.
The brokerage is also anticipating an improvement in Swiggy’s execution, along with accelerating growth and improving profitability.
For the September quarter, Swiggy reported a net loss of ₹625 crore, which was around the same levels in the previous quarter as well as last year.
In its post-earnings presentation, Swiggy mentioned that it is anticipating a contribution break-even by the October-December period of 2025 and an adjusted EBITDA break-even by the July-September quarter of financial year 2025.
On a consolidated basis, it will achieve positive adjusted EBITDA by the third quarter of financial year 2026 or the October-December period of calendar year 2025.
CLSA expects India’s quick-commerce industry to grow by 6x over financial year 2024-2027 and Swiggy is likely to be one of the largest beneficiaries of the same.
Although the brokerage expects Swiggy to continue lagging its peer Zomato, it believes that this gap is in Swiggy’s price already.
Out of the eight analysts that have coverage on Swiggy so far, three of them have a “buy” and “sell” recommendation each, while two others have a “hold” rating.
Shares of Swiggy ended 0.8% lower on Monday at ₹540.3. The stock has already risen 38% from its IPO price of ₹390.
