Swiggy share prices have dropped over 7% today. Today 6th February share prices are Rs 387. This is the 52-week low after the company reported a Rs 800 Cr loss in Q3. What are analysts saying about this? Let’s check the highlights and recommendations.
Swiggy Share Prices
As of 6th Feb, swiggy share prices have fallen by 7.43%. The current price on BSE is Rs 387 which is 52 weeks low. This caused the stock to slip below the IPO Launch price of Rs 390. That is a 6.06% decline from the BSE listing of Rs 412.
Swiggy Financial Overview
As December quarter results from swiggy came out it showed the net loss of the company has spiked to 39.1% year to year. In the last quarter, the company lost nearly Rs 800 Crore. which was Rs 574.4 Crore last year. Als,o the operating revenue, has spiked 31% higher. Last year’s operating revenue was Rs 3048.6 crore, which is Rs 3993.1 Crore this year. Tough there are huge losses, the company is growing year on year in B2C segments like Instamart, Out of home consumption and Food Delivery.
Factors to Consider
Higher Expenses: The expenses have increased by 32% year on year as the company is heavily investing in infrastructure. The report says more than 90 Dark stores are added to the network. this is to make more strong presence in quick commerce delivery segment.
Strategic Initiative: As the quick commerce industry grows swiggy has turned its focus towards these. More products like Bolt and Snack are added to the 10-minute food delivery service. Not only this but swiggy is also starting a new category named Swiggy Scenes for restaurant and event reservations.
Analysts Overview
There are mixed recommendations coming from various brokerage firms. Below are some of these recommendations:
Kotak Institutional Equities: Kotak recommends buying swiggy shares with a target price of Rs 500. They are hoping that Swiggy’s food delivery margins will improve which will adjust EBITDA CAGR of 62% over financial year 2025-2028 for the segment.
Motilal Oswal Financial Services: Motilal is neutral on swiggy shares because the noted Swiggy’s revenue and adjusted EBITDA loss can increase further in the last quarter of 2024-25.
As of now, market sentiments suggest buying. Because 11 out of 16 analysts suggest buying Swiggy shares. 3 of them recommend selling and two recommend holding shares.
