Swiggy hits 52-week low on mixed Q3 nos; most brokerages cut target price

In Q3, Swiggy's consolidated loss widened to Rs 799 crore as compared to Rs 574.4 crore a year-ago period

Shares of food delivery platform Swiggy lost 7.4 per cent in trade on Thursday (February 6, 2025), hitting 52-week at Rs 387 per share. The selling pressure came after the company posted mixed Q3 results and most brokerages cut target prices. 

 

Around 9:38 AM, Swiggy share price was down 3.25 per cent at 404.5 per share. In comparison, BSE Sensex was down 0.14 per cent at 78,165.11. The market capitalisation of the company stood at Rs 91,582.07 crore. The 52-week high of the stock was at Rs 617 per share. 

Swiggy Q3 results

Swiggy reported its third quarter (Q3FY25) numbers on February 6, 2025, after market hours. In Q3, the company's consolidated loss widened to Rs 799 crore as compared to Rs 574.4 crore a year-ago period. The company’s consolidated revenue from operations grew 31 per cent year-on-year (Y-o-Y) to Rs 3,993 crore, up from Rs 3,049 crore in Q3FY24. 

 

Its gross order value (GOV) grew 38 per cent Y-o-Y to Rs 12,165 crore. The company said the consolidated adjusted (Ebitda) loss reduced 2 per cent Y-o-Y to Rs 490 crore but rose Rs 149 crore quarter-on-quarter (Q-o-Q). Its adjusted Ebitda margins expanded to 2.5 per cent of gross order value (GOV). 

READ: Swiggy Q3 results: Net loss widens to Rs 799 crore, GOV grows 38%

 

Brokerages have maintained their stance on Swiggy post Q3, however, most of them have cut their target price. 

 

Motilal Oswal maintained a 'Neutral' rating but cut the target price to Rs 460 per share from Rs 520.   The brokerage believes food delivery remains a stable duopoly; however, increased competition and aggressive dark store expansion have rebased profitability expectations for the quick commerce sector in the near term. 

 

Despite this, it implied Enterprise Value to Gross Order Value (EV/GMV) FY27e multiple for quick commerce at 0.7x, which analysts at the brokerage do not consider to be overly demanding, especially after the recent correction.

 

An acceleration in average order value (AOV) and take rates, and a possible stock correction after these results could prompt Motilal Oswal to turn constructive on the stock.  READ: Reliance Power share price surges 9.5% on turning profitable in Q3

 

CLSA maintained 'Accumulate' rating but decreased the target price to Rs 726 per share as compared to Rs 750.

 

As per the brokerage, Swiggy's quick commerce business showed way while food delivery crossed a bump in road. Food delivery growth was led by Bolt, Swiggy's 10-minute food delivery service.

 

Macquire iterated 'Underperform' with a target price of Rs 325 per share.  The brokerage said network expansion and competitive intensity weighed on margins. Further, it believes hyper-competition will last for a few more quarters, and the food delivery business may achieve margin guidance over time. However, the brokerage prefers Zomato over Swiggy.

 

Besides, JP Morgan maintained an 'Overweight' rating but cut the target to Rs 620 per share as compared to Rs 730. Bernstein continued with an 'Outperform' rating but cut the target to Rs 575 per share as compared to Rs 635. Axis Capital maintained 'Buy' by cutting the target to Rs 555 per share as compared to Rs 640.