SWIGGY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | SWIGGY | Market Cap | 68,967 Cr. | Current Price | 250 ₹ | High / Low | 474 ₹ |
| Stock P/E | 158 | Book Value | 75.5 ₹ | Dividend Yield | 0.00 % | ROCE | 2.76 % |
| ROE | 2.65 % | Face Value | 1.00 ₹ | DMA 50 | 279 ₹ | DMA 200 | 336 ₹ |
| Chg in FII Hold | -1.48 % | Chg in DII Hold | 2.91 % | PAT Qtr | 279 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 35.8 | MACD | -7.88 | Volume | 68,53,996 | Avg Vol 1Wk | 1,08,23,366 |
| Low price | 247 ₹ | High price | 474 ₹ | PEG Ratio | 5.54 | Debt to equity | 0.01 |
| 52w Index | 1.17 % | Qtr Profit Var | 2,890 % | EPS | -12.4 ₹ | Industry PE | 37.8 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹279 Cr. vs ₹112 Cr. previous quarter, showing improvement but overall EPS remains negative (-12.4 ₹).
- Margins: ROE at 2.65% and ROCE at 2.76% reflect weak efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.01 indicates negligible leverage, strong balance sheet.
- Cash Flow: Stable due to low debt, but profitability remains inconsistent.
💹 Valuation Indicators
- P/E Ratio: 158 vs Industry PE of 37.8 — extremely high, signaling severe overvaluation.
- P/B Ratio: Price ₹250 vs Book Value ₹75.5 → ~3.31x, moderately expensive relative to assets.
- PEG Ratio: 5.54 indicates stretched valuations relative to growth.
- Intrinsic Value: Current price appears significantly overvalued compared to fundamentals.
🍴 Business Model & Advantage
Swiggy operates as a leading food delivery and quick-commerce platform in India. Its competitive advantage lies in strong brand recognition, wide delivery network, and diversification into grocery and instant delivery. However, profitability remains a challenge due to high operating costs and intense competition.
📈 Technicals & Entry Zone
- RSI at 35.8 indicates oversold territory.
- MACD negative (-7.88) suggests short-term weakness.
- Entry Zone: Attractive accumulation only if price corrects to ₹220–₹240 range.
- Long-term Holding: Suitable for high-risk investors betting on digital consumption growth, but valuation risks are high.
✅ Positive
- Quarterly PAT improved from ₹112 Cr. to ₹279 Cr.
- Negligible debt-to-equity ratio (0.01).
- DII holdings increased (+2.91%).
⚠️ Limitation
- Extremely high P/E ratio (158).
- Weak ROE (2.65%) and ROCE (2.76%).
- Negative EPS (-12.4 ₹).
📰 Company Negative News
- FII holdings declined (-1.48%).
- Profitability remains inconsistent despite revenue growth.
🌟 Company Positive News
- DII holdings increased significantly (+2.91%).
- Quarterly PAT growth shows operational improvement.
- Strong brand presence and diversified offerings in food and quick-commerce.
🏭 Industry
Food delivery and quick-commerce industry PE at 37.8 reflects moderate valuations. The sector benefits from rising digital adoption and convenience demand, but faces risks from competition, regulatory changes, and profitability challenges.
🔎 Conclusion
Swiggy demonstrates strong brand presence and growth potential in India’s digital consumption space, but current valuations are stretched with high P/E and PEG ratios. Profitability remains weak, making it a risky bet. Long-term investors may consider accumulating only in the ₹220–₹240 range, aligning with sector growth but mindful of valuation and earnings risks.
For broader context, you could explore a peer comparison or an industry outlook to complement this analysis.