Axis Capital underscored Swiggy’s position as India’s second largest player in food delivery and quick commerce
Reportedly shares of swiggy climbed over 14% at Rs 612.30 on Monday, december 16, after Axis capital initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs 640. The target represents a 20% upside from the stock’s last closing price of Rs 532.35. The brokerage highlighted a 27% valuation discount to rival Zomato, calling it justified given Swiggy’s growth trajectory and market position. This positive outlook triggered a sharp rally in the stock, pushing it to a fresh all time high.Meanwhile Axis capital underscored Swiggy’s position as India’s second largest player in food delivery and quick commerce, noting that these sectors remain underpenetrated, offering significant long-term growth opportunities. Swiggy’s expansion strategy in the quick commerce segment, combined with improved cost management, is expected to drive revenue growth and sustain its competitive edge. The report also praised Swiggy’s strengthened leadership team for its ability to navigate challenges effectively.Moreover Swiggy’s stock is currently trading above all major exponential moving averages (EMAs), indicating strong bullish momentum. The relative strength index (RSI), hovering near 61, suggests there’s room for further gains without entering overbought territory. swiggy made its highly anticipated market debut on november 13, 2024, with shares listed at Rs 412 on the BSE, reflecting a 5.6% premium to its IPO price of Rs 390. On the NSE, the stock opened at Rs 420, delivering a 7.6% premium.