Swiggy shares gain nearly 5% Monday after nearly 17% fall
Swiggy's shares climbed nearly 5% on Monday, recovering a bit after a sharp nearly 17% fall on Friday.
The big dip came after Q2 results showed Instamart's losses growing, which overshadowed steady gains from Swiggy's food delivery business.
Still, many market watchers think Swiggy has solid long-term potential thanks to its strong performance in food delivery.
Brokerages trim targets, Instamart losses ₹895cr
Brokerages like Jefferies and Nomura have trimmed their target prices but still see promise: Jefferies now values Swiggy at ₹330 per share and Nomura at ₹300, with Nomura continuing to view food delivery as a cash-generating business for Swiggy.
Instamart's losses grew to ₹895 crore as investments ramped up, but food delivery GOV jumped by 17.7%, helping profits rise too.
Even with shares down 31% in a month, Bernstein is sticking with an Outperform rating.
For now, investors are keeping an eye on how Swiggy balances quick commerce challenges with its core strengths.