Swiggy share price jumps over 6% after Q2FY25 results. Is it still a stock to buy today? | Stock Market News
Source: Live Mint
Swiggy share price jumped over 6% on Wednesday after the food and grocery delivery major reported its earnings for the second quarter of FY25. Swiggy shares spiked as much as 6.69% to ₹534.85 apiece on the BSE.
The newly-listed Swiggy reported strong revenue growth along with narrowing of losses in the quarter ended September 2024.
Swiggy’s revenue from operations in Q2FY25 increased by 30% to ₹3,601.45 crore from ₹2,763.33 crore in the corresponding period last year. The company had posted a revenue of ₹3,222.2 crore in Q1FY25.
Consolidated net loss of Swiggy during the July-September of FY25 narrowed by 5% to ₹625.5 crore from a loss of ₹657 crore in the same period last fiscal year.
At the operational level, Swiggy’s EBITDA loss in Q2FY25 also declined to ₹555 crore from ₹624 crore, YoY. The company’s monthly transacting users (MTU) grew 7% QoQ and 19% YoY to 17.1 million.
Should you buy Swiggy share?
JM Financial continues to value Swiggy’s food delivery business at 45x EV/ FY27E Adj. EBITDA multiple. In quick commerce, it now values Instamart at 1.75x EV/ FY27E GOV multiple versus 1.25x earlier due to improving growth profile and contribution margin profitability that gives it better confidence on the company’s future prospects.
“We continue to believe that Swiggy along with Zomato is well positioned to benefit from robust industry tailwinds for the hyperlocal delivery businesses. Post IPO, its balance sheet also remains strong with net cash of ₹88 billion as of September 2024,” JM Financial said.
The brokerage firm maintains a ‘Buy’ rating on Swiggy shares and raised March 2026 target price to ₹550 per share from ₹470 earlier.
Brokerage firm Motilal Oswal Financial Services (MOFSL) expects Swiggy’s food delivery orders to grow at 12.5% annually with an AOV growth of 1.4%, leading to a GOV growth of 14.1% over FY24-37. Q-commerce is expected to grow faster with orders increasing at 23.6% annually, AOV growth at 3.2%, and GOV growth at 27.6%.
MOFSL expects Swiggy to report a PAT margin of -16.1%, -3.9% and 1.8% in FY25, FY26 and FY27. It has a ‘Neutral’ rating and Swiggy share price target of ₹475 apiece.
Swiggy shares made a decent stock market debut on November 13 as the stock was listed with 5.64% premium to the issue price at ₹412 apiece on the BSE. The stock of the food delivery major is up nearly 30% from its listing price. It hit a high of ₹542.10 apiece on December 3.
At 12:10 PM, Swiggy shares were trading 2.54% higher at ₹514.05 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
