Swiggy Gets A 'Neutral' Rating As Motilal Oswal Initiates Coverage

Motilal Oswal Report

Swiggy Ltd.’s unified platform has become essential for urban consumers, covering everything from food delivery to grocery needs in one app. Leveraging a unique blend of convenience, high-frequency offerings, and user stickiness, Swiggy stands out in the competitive landscape.

While Zomato currently holds the lead in food delivery and quick commerce businesses, Swiggy’s all-in-one app strategy enables strong cross-utilization across services and better operational efficiency.

We believe quick commerce is a once-in-a-lifetime opportunity to disrupt how Indian consumers shop for not just groceries but a variety of essential and nonessential goods, and Swiggy could be a top three player in an exponentially growing market. Current numbers, however, suggest that despite being an innovator and a category inventor across both food delivery and quick commerce, Swiggy has let its leadership slip away.

Tight execution and better leveraging its platform can fix these issues, in our opinion, though.

Overall, Swiggy is well-positioned to capitalize on this growth by expanding its customer base, increasing the order volumes and values, and improving its unit economics and profitability. We initiate coverage with a Neutral rating and a target price of Rs 475.

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