Swiggy Shares Jump 3% After JP Morgan Initiates Coverage With ‘Overweight’

Shares of Swiggy jumped over 3% in early trading hours today (December 19) after brokerage firm JP Morgan initiated coverage on the foodtech major with an “overweight” rating, saying the Sriharsha Majety-led company is the “dark horse of India local services.”

The stock surged as much as 3.47% to INR 597.40 apiece on the BSE during the intraday trading session.  

The brokerage also set a price target of INR 730 for Swiggy, which indicates an upside potential of 26.4% from the stock’s previous close.

In a recent note, analysts at JP Morgan said Swiggy has been the pioneer of local internet services in India — including food delivery and quick commerce business models.

While Swiggy was unseated by Zomato, the recently-listed foodtech giant is now a strong contender in both food delivery and quick commerce markets due to renewed focus and improved execution, the brokerage said.

JP Morgan said it expects Swiggy to hit a gross order value of INR 1,058 Bn across both food delivery and quick commerce verticals by FY27, “enabling a faster-than-peer expansion in profitability over FY25-28.”

The brokerage is also betting big on Swiggy’s recent launch of 10-minute food delivery service Bolt, which is likely to help Swiggy regain market share and increase its customer reach.

As per JP Morgan’s checks, it said that Swiggy has caught up with peers on speed and outperforms them on reliability. In addition, a rapidly expanding stock keeping unit (SKU) mix and store footprint make it competitive in retaining and regaining quick commerce share.

This development comes days after the domestic brokerage Axis Capital initiated coverage on Swiggy, with a ‘Buy’ rating and a target price of INR 640 per share, leading its shares surge 11.70% to INR 594.80, from its last close.

It is pertinent to note that the shares of the Instamart parent made its market debut on November 13, at INR 412, a premium of almost 6% to its IPO issue price of INR 390 per share on the BSE.

Swiggy trimmed its consolidated net loss by 4.78% to INR 625.53 Cr in the September quarter of the financial year 2024-25 (FY25) from INR 657 Cr, a year ago. Meanwhile, its operating revenue zoomed 30% to INR 3,601.45 Cr during the quarter under review, compared to INR 2,763.33 Cr, in the previous year.

On grounds of retaining its market share and shore up its revenue, the foodtech giant launched a new offering Swiggy Scenes, under its Dineout section, and an invite-only membership programme, One BLCK, earlier this month.