JM Financial retains Buy on Swiggy, revises target price to Rs 450

JM Financial has maintained a Buy call on Swiggy with a target price of Rs 450 (earlier Rs 500). The current market price of Swiggy Ltd. is Rs 310.2 Time period given by analyst is a year when Swiggy price can reach the defined target. Swiggy, incorporated in 2013, is a Small Cap company with a market cap of Rs 68891.67 crore, operating in the Services sector.

Swiggy's key products/revenue segments include Platform Services, Other Operating Revenue and Sale of Food for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 4530.71 crore, up 10.62% from last quarter Total Income of Rs 4095.84 crore and up 44.14% from last year same quarter Total Income of Rs 3143.24 crore. The company has reported net profit after tax of Rs -1078.96 crore in the latest quarter.

The company's top management includes Mr.Anand Kripalu, Mr.Sumer Juneja, Mr.Ashutosh Sharma, Mr.Anand Daniel, Ms.Suparna Mitra, Mr.Sahil Barua, Mr.Shailesh Vishnubhai Haribhakti, Mr.Lakshmi Nandan Reddy Obul, Mr.Sriharsha Majety, Mr.Roger Clark Rabalais. The company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 229 crore shares outstanding.


Investment Rationale
JM Financial continues to value Swiggy?s food delivery business at 45x EV/ FY27E Adj. EBITDA multiple. They value Instamart at 0.5x EV/ FY27E GOV multiple versus 1.0x earlier due to substantial margin profile deterioration amidst high competitive pressures. For other businesses, JM Financial now uses 1x EV/GOV FY27E multiple (from 0.9x earlier) for out-of-home consumption as it has turned profitable while continuing to use 0.5x EV/Sales multiple for supply chain and distribution. Accordingly, the revised SOTP based Mar?26 target price works out to Rs 450 vs. Rs 500 earlier. While they see near-term pressures on the stock price, longterm investors can use these liquidity events to build a sizeable position in Swiggy as, at CMP, the market seems to accord value to only its food delivery business, whereas Instamart and other businesses are not getting any meaningful value. The brokerage maintains BUY.