SWIGGY - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.2

📊 Core Financials Analysis

Profitability & Growth

Deepening losses: Quarterly PAT worsened from ₹-803 Cr. to ₹-1,081 Cr. (QoQ decline of 104%).

ROCE at -29.2% and ROE at -255% reflect severe capital inefficiency and shareholder value erosion.

EPS is negative at ₹-13.6, indicating continued unprofitability.

Debt & Liquidity

Debt-to-equity ratio of 0.17 is relatively low, suggesting manageable leverage.

No dividend payout — typical for high-growth tech startups reinvesting aggressively.

Cash Flow

Likely negative operating cash flows given sustained losses and high burn rate.

📉 Valuation Metrics

Metric Value Remarks

P/E Ratio Not applicable Negative earnings make P/E unusable

P/B Ratio ~9.26 Very high for a loss-making company

PEG Ratio Not available No positive earnings growth to assess

Intrinsic Value Overvalued Based on current financial trajectory

Valuation is speculative and driven by growth expectations rather than fundamentals.

🍽️ Business Model & Competitive Edge

Swiggy is a leading food delivery and quick-commerce platform in India, competing with Zomato and emerging players.

Competitive advantage lies in brand recognition, logistics network, and scale — but profitability remains elusive.

High customer acquisition costs and thin margins in food delivery challenge long-term sustainability.

📌 Entry Zone & Investment Guidance

Entry Zone: ₹300–₹340 range — closer to recent low of ₹297 and below DMA levels, offering better risk-reward.

Current Price: ₹414 — above both 50 & 200 DMA, but momentum indicators (RSI 64.5, MACD 10.7) suggest short-term overbought.

Long-Term View

High-risk speculative bet — suitable only for aggressive investors with long-term conviction in India's digital consumption story.

Wait for signs of profitability or improved unit economics before considering serious allocation.

Would you like a head-to-head comparison with Zomato or a breakdown of Swiggy’s Instamart and cloud kitchen strategy?

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