India's Swiggy rises as Jefferies says ownership change could lift margins
BUZZ-India's Swiggy rises as Jefferies says ownership change could lift margins ** Swiggy SWIG.NS shares rise 2.6% to 279.80 rupees
** Jefferies says SWIG's transition to Indian Owned & Controlled Company (IOCC) status moves a step closer following shareholder approval of a 49.5% foreign ownership cap
** IOCC status would allow co's Instamart quick commerce platform to adopt an inventory-led model, potentially lifting contribution margins by about 80 basis points, brokerage says, retaining "buy" rating with PT of 435 rupees
** Macquarie says quick commerce remains structurally loss-making amid intensifying competition, with economics challenged by expansion and discounting
** Brokerage also sees food-delivery margins near peak levels and keeps an "underperform" rating on both Swiggy and rival Eternal ETEA.NS
** Avg rating on SWIG and ETEA at "buy" -- LSEG compiled data
** YTD, SWIG down 27.3%, while ETEA up 17.8%
(Reporting by Kashish Tandon in Bengaluru)
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