From Rs 470.75 level on November 29 to a high of Rs 576.95 in Thursday's trade, Swiggy shares have rallied 23 per cent in seven straight sessions of rally, thanks to another 11 per cent jump on the counter today.
But if one were to go by analyst targets, the Swiggy stock stares at downside ahead. HDFC Institutional Equities (HSEI) suggested a 12-month target price of Rs 470 on Swiggy Ltd today, the same level where the stock was trading at a week ago. MOFSL also suggested a similar target of Rs 475 on the stock.
On Thursday, the stock surged 11.35 per cent to hit a high of Rs 576.95 on BSE. "While step-up in customer acquisition is encouraging; the current market price post recent run-up now suggests the path to convergence in QC with Blinkit is a foregone conclusion but we differ here. Hence, we downgrade the stock to REDUCE with a revised target price of Rs 470 per share," HSEI said.
The domestic brokerage said order density has been improving for Swiggy’s dark store network but, at a similar scale, peer Blinkit had covered significantly more ground in terms of unit economics.
MOFSL said Swiggy’s re-rating depends on accelerating GOV growth, increasing AOVs, and improving execution in the quick commerce business.
"Swiggy is expected to report PAT margin of -16.1%/-3.9%/1.8% in FY25/FY26/FY27. Our adjusted Ebitda remains unchanged; however, PAT has been impacted by increased ESOP expenses. Our DCF-based valuation of Rs 475. We reiterate our Neutral rating on the stock," MOFSL said.
The Rs 550-target on Swiggy as suggested by JM Financial yesterday has also been breached after Thursday's rally.
JM Financial said it is circumspect in forecasts, but Swiggy laying out tough goals for itself is commendable. It raise raised its GOV target multiple for Instamart due to sharp improvement in the business growth profile as well as contribution profitability.
"Maintain Buy on Swiggy with a revised March 2026 target price of Rs 550," it said.