As of November 27, 2024, Swiggy’s share price is ₹490.95, reflecting an increase of ₹29.05 or 6.29% from the previous trading session. This article evaluates the current state of Swiggy shares, its financial health, recent developments, and provides insights on whether to buy, hold, or sell.
Swiggy Share Price in Today’s Market
Today, Swiggy opened at ₹468.00 and reached a high of ₹496.55, while dipping to a low of ₹465.55 during trading hours. The stock has demonstrated considerable activity with a market capitalization of approximately ₹109,348 crore and a trading volume exceeding 9,432,508 shares. This significant increase in share price reflects positive investor sentiment following favorable analyst coverage.
Swiggy Financial Overview
Swiggy’s financial metrics indicate a rapidly evolving operational framework as it continues to grow in the competitive food delivery market. The company has a P/E ratio of 0, primarily due to its negative earnings per share (EPS) of -8.43, highlighting ongoing profitability challenges. However, the reported sales growth stands at an impressive 36.94%, indicating strong demand for its services. Additionally, there is currently no dividend yield offered.
Key Financial Metrics:
- Market Cap: ₹109,348 Cr.
- Book Value (TTM): ₹15.49
- Sales Growth: 36.94%
- ROE: 0%
- Profit Growth: 49.75%
Recent News of Swiggy Share
Recent developments have significantly impacted investor sentiment regarding Swiggy:
- UBS Coverage Initiation: Swiggy shares surged after UBS initiated coverage with a “buy” rating and set a target price of ₹515, citing strong growth prospects and a significant valuation discount compared to rival Zomato.
- Market Positioning: Analysts noted that Swiggy is narrowing the gap with Zomato in terms of margins and scale in the online food delivery segment.
- Volume Growth: Data indicates that Swiggy’s volume growth is tracking in line with industry standards for 2024, suggesting recovery and stabilization after previous market share losses.
Swiggy Share Pros & Cons
When considering an investment in Swiggy shares, it is essential to evaluate several factors:
→ Pros: Strong sales growth indicates robust demand for Swiggy’s digital delivery solutions amidst increasing competition in the food delivery sector.
→ Pros: Positive analyst ratings and target price upgrades suggest confidence in the company’s future performance and market position.
→ Cons: Negative EPS raises concerns about the company’s ability to generate consistent profits in the near term.
→ Cons: The absence of a dividend yield may not appeal to income-seeking investors looking for regular returns.
Indiahood Recommendation on Swiggy Share: Buy or Sell?
Given the current market conditions and financial outlook, it is advisable to hold Swiggy shares for now. Investors should monitor market trends closely and consider accumulating more shares if prices dip further into the ₹480-485 range.
Others Recommendation on Swiggy Share: Buy or Sell?
Market experts have varied opinions regarding Swiggy:
- Anil Kumar from ICICI Direct recommends buying at current levels with a target price of ₹515 based on anticipated growth from strong operational performance and favorable market conditions.
- Other analysts suggest caution due to recent volatility but acknowledge that sustained demand for food delivery services could lead to positive outcomes if the stock stabilizes above ₹490.
Conclusion
Swiggy presents both opportunities and challenges for investors navigating today’s market landscape. While strong revenue growth signals potential for future success, ongoing profitability concerns warrant careful consideration before making investment decisions.
Disclaimer
This article is intended solely for informational purposes and should not be construed as investment advice. Investors are encouraged to conduct their own research or consult with financial advisors before making investment decisions regarding Swiggy shares or any other securities.
