India's Swiggy shines as Nomura starts with 'buy'

Swiggy

08/09/2025 05:16

** Shares of Indian food and grocery delivery platform Swiggy SWIG.NS climb as much as 4.5% to 458.95 rupees, their highest level in 7 months

** Brokerage Nomura initiates coverage on stock with "buy" and target price of 550 rupees

** TP, second highest among 23 brokerages covering the stock, implies a 25% upside from last close, per data compiled by LSEG

** Nomura says Swiggy's constant product innovations, including 10-minute quick food delivery, will help boost market share by 100 basis points in FY26 against Eternal's ETEA.NS Zomato

** Says slowing competitive intensity in quick commerce, improved output from dark stores and lower discounts will likely aid positive contribution margin from Instamart by Q2FY27

** Adds, Swiggy's cash balances are enough to weather competition in near-term

** SWIG last up 1.1%, trimming YTD losses to ~18%

 (Reporting by Manvi Pant in Bengaluru)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))