Swiggy receives buy rating from Emkay Global with ₹310 target
Business
Swiggy just got a "buy" rating from Emkay Global, with a new target price of ₹310.
This comes after both its Quick Commerce and Food Delivery businesses showed growth last quarter, though not as fast as rival Eternal.
Still, the numbers are moving in the right direction.
Food delivery adjusted EBITDA up 41.8%
Food Delivery adjusted EBITDA jumped 41.8% year-over-year to ₹3.41 billion, but InstaMart (its Quick Commerce arm) saw losses rise to ₹8.95 billion.
Swiggy's team says these losses are temporary and expects to break even once it scales up more, saying it would be able to "breakeven at 2.3x the scale."
Despite higher losses, Emkay cut its target price to ₹310 from ₹350 and retained its buy rating.