Analysts remain bullish on the road ahead for Swiggy's stock that debuted on the bourses on Wednesday. Global brokerage firm Macquarie remains highly optimistic and has set a price target of ₹700 on the stock from a long-term perspective.
Macquarie said Swiggy has a clear path to catch up with leader Zomato in food delivery. The Swiggy stock made an impressive market debut, listing at ₹412 on the BSE and ₹420 on the National Stock Exchange, marking premiums of 5.64 per cent and 7.69 per cent, respectively, over the IPO issue price of ₹390. By comparison, the Nifty and Sensex ended the day in the red.
"Despite a strong potential growth runway and an improving margin profile, we believe Swiggy still has a long and winding road to profitability. However, even as peer Zomato is the more efficient operator when considering what is priced in the shares, we prefer Swiggy over Zomato," said analysts at Macquarie in their research note.
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