Food and grocery delivery firm Swiggy Ltd's shares rose 20% in three straight sessions, days after the stock made a tepid market listing.
On November 27, Swiggy's shares extended their previous two-day gains as UBS initiated coverage on the stock with a "Buy" rating.
UBS said that in the online food delivery (OFD) segment, Swiggy is narrowing the gap with Zomato in terms of margins and scale and had given a target price of Rs 515.
On November 25, Swiggy's shares went to a low of Rs 417.2 apiece and rebounded from there to hit Rs 501.7 apiece, implying gains of over 20%.
At 12 pm on November 27, Swiggy's shares were trading 6% higher at Rs 489 apiece. The market capitalisation of the stock is Rs 1.1 lakh crore.
Meanwhile, according to a report by JPMorgan, Swiggy Instamart has emerged as the fastest player in India's rapidly growing quick commerce sector, which is dominated by players, including Blinkit, Zepto, BB Now, and Flipkart Minutes,
To be sure, JPMorgan was one of the bankers to Swiggy’s $1.35-billion IPO which went live earlier this month. The delivery arm of Swiggy recorded the lowest median delivery time among its competitors, offering deliveries in just 8 minutes across the top four Indian cities, JPMorgan said. This comes in contrast to its promised 6-minute delivery window, making it the quickest in the sector, according to the report.
On November 26, Swiggy said it will declare its September quarter results on December 3, 2024.
"The meeting of the Board of Directors of the Company is scheduled on 03/12/2024 ,inter alia, to consider and approve Unaudited financial results (Standalone & Consolidated) for the quarter and half year ended September 30, 2024," the company said in a stock exchange filing.
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