SWIGGY - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 1.9
| Stock Code | SWIGGY | Market Cap | 88,689 Cr. | Current Price | 321 ₹ | High / Low | 474 ₹ |
| Book Value | 43.5 ₹ | Dividend Yield | 0.00 % | ROCE | -23.3 % | ROE | -91.9 % |
| Face Value | 1.00 ₹ | DMA 50 | 360 ₹ | DMA 200 | 390 ₹ | Chg in FII Hold | 3.84 % |
| Chg in DII Hold | 6.59 % | PAT Qtr | -886 Cr. | PAT Prev Qtr | -881 Cr. | RSI | 39.5 |
| MACD | -17.0 | Volume | 89,92,776 | Avg Vol 1Wk | 1,78,01,485 | Low price | 297 ₹ |
| High price | 474 ₹ | Debt to equity | 0.01 | 52w Index | 13.6 % | Qtr Profit Var | -40.4 % |
| EPS | -14.8 ₹ | Industry PE | 46.9 |
📊 Analysis: SWIGGY shows very weak fundamentals with ROE at -91.9% and ROCE at -23.3%, indicating poor capital efficiency. The company is loss-making, with negative EPS (-14.8 ₹) and quarterly PAT consistently in the red (-886 Cr.). Dividend yield is 0%, offering no passive returns. Valuation metrics like P/E and PEG are not meaningful due to losses. Technical support lies around 300–320 ₹, with resistance near 360–390 ₹ (DMA levels). The ideal entry zone is only for speculative traders near 290–310 ₹, but long-term investors should avoid fresh entry until profitability improves. For existing holders, exit on rallies near 360–400 ₹ is advisable, as fundamentals do not support compounding.
✅ Positive
- Large market cap of 88,689 Cr. ensures scale and brand presence.
- Debt-to-equity ratio of 0.01 indicates virtually debt-free balance sheet.
- Strong institutional interest: FII holdings up 3.84% and DII holdings up 6.59%.
- High trading volumes reflect liquidity and investor activity.
⚠️ Limitation
- Negative ROE (-91.9%) and ROCE (-23.3%) highlight poor efficiency.
- Consistent losses with negative EPS (-14.8 ₹).
- No dividend yield, limiting investor returns.
- Quarterly profit variation (-40.4%) shows worsening financials.
📉 Company Negative News
- Persistent losses with PAT at -886 Cr. vs -881 Cr. previous quarter.
- MACD at -17.0 indicates bearish momentum.
- Stock trading at only 13.6% of 52-week index range, reflecting weak sentiment.
📈 Company Positive News
- Strong institutional participation (FII & DII increases).
- Debt-free balance sheet provides resilience despite losses.
🏭 Industry
- Food delivery and quick commerce sector has long-term demand drivers.
- Industry P/E at 46.9 highlights growth potential, but SWIGGY trades at a loss.
- Structural drivers: rising digital adoption, convenience demand, and urban consumption trends.
🔎 Conclusion
SWIGGY earns a rating of 1.9 due to persistent losses, negative ROE/ROCE, and lack of dividend yield. Long-term investors should avoid fresh entry until profitability improves. Current holders should consider exiting near 360–400 ₹ resistance levels. The stock remains highly speculative and unsuitable for long-term compounding, despite strong brand presence and institutional interest.