HDFC Securities Reaffirms Swiggy 'Buy' Rating, Sets Rs 460 Target

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AuthorAnanya Iyer|Published at:
HDFC Securities Reaffirms Swiggy 'Buy' Rating, Sets Rs 460 Target
Overview

HDFC Securities reiterated its 'Buy' rating on Swiggy, establishing a target price of Rs 460 per share. The brokerage observed consistent gains in food delivery key performance indicators. It noted that losses in the quick commerce segment, Instamart, appear to have peaked, suggesting the business may be valued at no cost to investors. Revised EBITDA loss estimates for FY27/28 were also incorporated.

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HDFC Securities Stands Firm on Swiggy

HDFC Securities has reaffirmed its 'Buy' rating on Swiggy, setting a target price of Rs 460 per share. The brokerage's valuation is based on multiples applied to its core food delivery business and its Instamart quick commerce operations.

Instamart Losses Seen Peaking, Path to Profitability

The report highlights steady gains in food delivery performance metrics. However, it also notes increasing performance differences between Swiggy Instamart and its competitor, Blinkit. Despite these competitive pressures, HDFC Securities believes losses in the quick commerce segment have likely peaked.

This outlook suggests that at current valuations, Swiggy's Instamart business is essentially valued at no cost to investors. HDFC Securities also updated its estimates for Adjusted EBITDA losses, forecasting -Rs 15.6 billion for FY27 and -Rs 3.9 billion for FY28, a slight revision from previous figures. This points to a more optimistic view on the path toward profitability for Swiggy's various operations.

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