⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SWIGGY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.6
| Stock Code | SWIGGY | Market Cap | 82,450 Cr. | Current Price | 299 ₹ | High / Low | 474 ₹ |
| Book Value | 43.5 ₹ | Dividend Yield | 0.00 % | ROCE | -23.3 % | ROE | -91.9 % |
| Face Value | 1.00 ₹ | DMA 50 | 323 ₹ | DMA 200 | 370 ₹ | Chg in FII Hold | 3.84 % |
| Chg in DII Hold | 6.59 % | PAT Qtr | -886 Cr. | PAT Prev Qtr | -881 Cr. | RSI | 44.6 |
| MACD | -11.0 | Volume | 53,74,867 | Avg Vol 1Wk | 1,10,22,028 | Low price | 271 ₹ |
| High price | 474 ₹ | Debt to equity | 0.01 | 52w Index | 13.6 % | Qtr Profit Var | -40.4 % |
| EPS | -14.8 ₹ | Industry PE | 39.7 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT remains negative (-₹886 Cr. vs -₹881 Cr.), showing persistent losses.
- Margins: ROE at -91.9% and ROCE at -23.3% reflect severe inefficiency and poor profitability.
- Debt: Debt-to-equity ratio of 0.01 indicates negligible leverage, but losses overshadow this positive.
- Cash Flow: Weak due to continuous losses, requiring reliance on external funding.
💹 Valuation Indicators
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: Current Price ₹299 vs Book Value ₹43.5 → ~6.87x, reflecting premium valuation despite losses.
- PEG Ratio: Not meaningful due to negative earnings growth.
- Intrinsic Value: Estimated fair value near ₹220–240, suggesting current price is overvalued.
🍴 Business Model & Competitive Advantage
- India’s leading food delivery and quick commerce platform.
- Competitive advantage lies in brand recognition, scale, and diversified services (Instamart, Genie).
- Challenges include high operating costs, intense competition, and thin margins.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only below ₹220–240, closer to intrinsic value.
- Long-Term Holding: Risky for conservative investors; suitable only for those willing to bet on future profitability and market dominance.
✅ Positive
- Strong brand presence and market leadership in food delivery.
- FII holdings increased (+3.84%) and DII holdings increased (+6.59%), showing institutional confidence.
- Negligible debt (0.01 debt-to-equity) ensures financial flexibility.
⚠️ Limitation
- Persistent losses with negative ROE (-91.9%) and ROCE (-23.3%).
- High P/B ratio (~6.87x) despite weak fundamentals.
- Reliance on external funding and lack of dividend yield.
📉 Company Negative News
- Quarterly losses continue, with PAT at -₹886 Cr.
- Profit variation (-40.4%) highlights worsening financial performance.
📈 Company Positive News
- Institutional investor confidence reflected in increased FII and DII holdings.
- Strong market share in food delivery and quick commerce segments.
- Expanding services beyond food delivery to diversify revenue streams.
🏭 Industry
- Food delivery and quick commerce industry is growing rapidly but remains highly competitive.
- Industry PE at 39.7 shows sector is moderately valued compared to Swiggy’s loss-making status.
- Consumer demand is strong, but profitability remains a challenge across the sector.
🔎 Conclusion
Swiggy demonstrates strong market presence and institutional backing but suffers from persistent losses, poor ROE/ROCE, and overvaluation relative to intrinsic value. Entry is only attractive below ₹220–240 for speculative investors. Long-term holding is risky, suitable only for those betting on eventual profitability and industry consolidation.