Swiggy Reports Higher Than Estimated Q3 Losses, Stock Dips 2.5% on BSE Delivery platform Swiggy's shares continued to dip for the fourth consecutive day, as investors are selling their stock after recognizing the company's higher-than-estimated Q3 EBITDA losses. Swiggy's stock fell 2.5 per cent to INR 379.20 on BSE.
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Delivery platform Swiggy's shares continued to dip for the fourth consecutive day, as investors are selling their stock after recognizing the company's higher-than-estimated Q3 EBITDA losses. Swiggy's stock fell 2.5 per cent to INR 379.20 on BSE.
Macquarie, a global brokerage firm, has given Swiggy an "Underperform" rating and a target price of INR 325 per share. This rating reflects a potential downside of nearly 17 per cent from Swiggy's issue price of INR 390.
The total market capitalization of the company has slipped below the INR 90,000 crore mark.
Despite a revenue jump in both its verticals, Instamart with 17 per cent QoQ to INR 576.50 crore, and food delivery business with the growth of 3.8 per cent QoQ to INR 1,636.8 crore, the company reported a net loss of INR 799 crore, which is a spike of 39 per cent for the quarter ended on December 31, 2024.
Swiggy hit the market on November 14, 2024 with the company selling its shares at INR 390 per equity share to raise a total of INR 11,327 crore via the primary market. The stock had earlier recorded a mild listing pop of 8 per cent above its issue price.
The research team at Bajaj Broking had said that Swiggy's listing on the Indian stock market has stirred up notable excitement, but early trading volatility reveals investor caution.
The stockbroking firm had predicted that the "road to profitability may be bumpy", while there's optimism about Swiggy's potential to capture further market share in India's
"Swiggy has shown impressive growth potential, yet persistent losses over recent fiscal years signal challenges ahead. Investors may need to brace for a dynamic journey as the company seeks to balance expansion with sustainable financial performance," said Bajaj Broking.
