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Swiggy Shares Jump 4% on Morgan Stanley Overweight Rating and Rs405 Price Target

With a projected adjusted EBITDA break-even by fiscal 2028, Morgan Stanley expects Swiggy to capture a significant share of India’s $57 billion quick commerce market.

Swiggy shares climb 4% as Morgan Stanley initiates coverage with 'Overweight' rating
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Overview

  • Swiggy’s stock climbed 4.15% to Rs347.25 following Morgan Stanley’s initiation of coverage with an overweight rating and Rs405 target price.
  • The brokerage forecasts Swiggy’s food delivery revenue to grow at a 15.8% compound annual growth rate from fiscal 2025 to 2029.
  • Quick commerce gross order value is projected to expand at a 63% CAGR over the same period, driven by aggressive investments and expanded service rollout.
  • Morgan Stanley values Swiggy’s food delivery business at 25 times its fiscal 2028 adjusted EBITDA, roughly 5% below rival Eternal’s equivalent multiple.
  • Swiggy has narrowed its profit-per-order gap with Eternal (formerly Zomato) from Rs12 in the March quarter of FY24 to Rs6 in the same quarter of FY25.