SWIGGY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | SWIGGY | Market Cap | 74,611 Cr. | Current Price | 270 ₹ | High / Low | 474 ₹ |
| Book Value | 43.5 ₹ | Dividend Yield | 0.00 % | ROCE | -23.3 % | ROE | -91.9 % |
| Face Value | 1.00 ₹ | DMA 50 | 293 ₹ | DMA 200 | 348 ₹ | Chg in FII Hold | -1.48 % |
| Chg in DII Hold | 2.91 % | PAT Qtr | -886 Cr. | PAT Prev Qtr | -881 Cr. | RSI | 41.5 |
| MACD | -2.10 | Volume | 84,57,270 | Avg Vol 1Wk | 1,11,67,853 | Low price | 256 ₹ |
| High price | 474 ₹ | Debt to equity | 0.01 | 52w Index | 6.39 % | Qtr Profit Var | -40.4 % |
| EPS | -14.8 ₹ | Industry PE | 38.0 |
📊 SWIGGY (Swiggy Ltd.) shows weak fundamentals with negative ROE (-91.9%) and ROCE (-23.3%), reflecting poor efficiency and heavy losses. The company continues to report negative PAT (₹-886 Cr vs ₹-881 Cr), highlighting ongoing profitability challenges. EPS is negative (-₹14.8), and there is no dividend yield, making it unattractive for income investors. Valuation remains unjustified with book value (₹43.5) far below current price (₹270). Technical indicators show weakness with RSI at 41.5 and MACD at -2.10, while the stock trades below both 50 DMA (₹293) and 200 DMA (₹348), signaling bearish momentum. Despite this, very low debt-to-equity (0.01) and increased DII holdings (+2.91%) provide some stability.
💰 Ideal Entry Price Zone: ₹260 – ₹265 (near support levels).
📈 Exit / Holding Strategy: Suitable only for speculative trades. Long-term holding is not recommended unless profitability improves. Exit near ₹285–₹290 to limit downside risk.
✅ Positive
- DII holdings increased (+2.91%), showing domestic institutional confidence.
- Debt-to-equity ratio is very low (0.01), reducing financial risk.
- Stock trading near oversold RSI levels may attract short-term traders.
⚠️ Limitation
- No positive earnings; EPS is negative (-₹14.8).
- ROCE (-23.3%) and ROE (-91.9%) are extremely weak.
- Trading below DMA levels shows weak technical strength.
- Volumes below weekly average indicate reduced market interest.
📉 Company Negative News
- PAT remained negative (₹-886 Cr vs ₹-881 Cr), showing continued losses.
- FII holdings decreased (-1.48%), showing reduced foreign investor confidence.
- No dividend yield, offering no income to investors.
📈 Company Positive News
- DII holdings increased, reflecting some domestic institutional support.
- Low debt levels provide financial stability.
🏭 Industry
- Industry P/E is 38.0, but SWIGGY has no meaningful P/E due to losses.
- Food delivery and tech-enabled services sector remains competitive but faces profitability challenges.
🔎 Conclusion
SWIGGY is a weak candidate for long-term investment due to poor fundamentals, consistent losses, and weak technical signals. Entry only near ₹260–₹265 if risk appetite is high, and exit around ₹285–₹290 to limit downside risk. Best suited for speculative short-term trades rather than long-term holding.