Swiggy shares skyrocket 15% to fresh peak after Axis Capital initiates coverage

Shares of the recently-listed Swiggy skyrocketed 15% to their new all-time high of Rs 612.30 on the BSE today after domestic brokerage firm Axis Capital initiated coverage on the stock with a ‘buy’ rating and a target price of Rs 640.

The target price given by the domestic brokerage firm indicates an upside of 20% for the stock from its Friday’s closing price. Axis Capital believes that Swiggy is in second place but is still in the race.

“Compelling investment opportunity as India's second-largest Q-com/food-delivery player as the food-delivery and Q-com businesses remain underpenetrated, with a long growth runway,” said Axis Capital in its note.


Swiggy's ambitious store expansion targets in Q-com should aid its GOV and top-line growth, while its cost control is also improving. The brokerage firm added that Swiggy's ideation and innovation abilities, along with its strengthened leadership team, should help it maintain its position as a market leader.

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Additionally, about 11.1 lakh shares of the company have also witnessed a change of hands in a block deal in an early trade today. However, the official parties to the transaction are not currently known.

The shares of Swiggy got listed on the exchanges earlier in the month of November at a price of Rs 420 on the NSE and Rs 412 on the BSE. Since then, the stock has increased by 30% and nearly 32% on the NSE and the BSE respectively.

Currently, on charts, the stock is trading above all its significant exponential moving averages and is oscillating near the 61 mark on the relative strength indicator (RSI).

Shares of the company ended at Rs 594.80 at close of trade, up 11.7% from the previous close.

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