Lucknow Press
Food delivery company Swiggy on Wednesday entered the elite club of companies with a market cap of over Rs 1 trillion (Rs 1 lakh crore) after its share price hit Rs 448 on the National Stock Exchange (NSE).
As of 11:15 am, Swiggy’s market cap was Rs 1,00,148 crore. Swiggy shares were trading 6.5 per cent higher at Rs 447.40 on the NSE, higher than its listing price. The stock closed 16.92 per cent higher than its issue price of Rs 390. Swiggy’s share was listed at Rs 420 on the NSE, a premium of 7.6 per cent over the issue price. A total of 7.13 crore shares were traded on the NSE and BSE.
JM Financial Institutional Securities has initiated coverage on Swiggy with a ‘buy’ rating and a target price of Rs 470 per share for March 2026. Swiggy has played a key role in the rapid expansion of India’s hyper local on-demand market.
It introduced a full-stack food delivery model in 2014 and also introduced a dark store-based quick commerce (QC) model during the pandemic, the brokerage firm says. Today, it remains one of the leading hyper local delivery platforms in the country, with Zomato being its only major competitor. Although Swiggy has lost some market share, it remains in the fast-growing consumption sector and has many options to increase profitability.
Swiggy’s recent problems may now be over. One reason for this was the pressure of the IPO and lack of experience in the retail business. These problems were also aggravated by the sudden leadership change in QC. The brokerage firm believes that a successful IPO and new leadership in Instamart can bring positive changes for Swiggy.
JM Financial valued Swiggy using the SOTP (sum of the parts) methodology, where each of its segments is valued based on EBITDA, GOV or sales. The multiples used to value these segments of Swiggy are 10-50 per cent lower than Zomato, reflecting the difference in scale and profitability.
Ashutosh Sharma, Head of Growth Investments in India and Asia, Prosus, has described Swiggy’s IPO success as the new success of ‘Digital India’. He said, “We have supported the team by investing in Swiggy since its inception. The team has crossed new boundaries, entered new areas and provided better service to millions of Indian customers. We are confident that Swiggy will bring more new changes in the food and delivery sector based on its strong foundation and customer love.”
Prosus has invested over $8 billion in startups like Swiggy, Urban Company, Meesho, and many others.
