SWIGGY - Investment Analysis

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

Investment Rating: 3.2

📊 Fundamental & Valuation Analysis

Swiggy Ltd is a high-growth, high-burn tech platform with strong market presence but deep profitability challenges

ROE / ROCE: -255% / -29.2% — extremely negative, indicating poor capital efficiency

EPS: -₹13.6 — consistent losses

PEG Ratio: Not available — due to negative earnings

P/E Ratio: Not applicable — company is loss-making

Dividend Yield: 0.00% — no income potential

Debt to Equity: 0.17 — manageable leverage

Despite a 54% YoY revenue surge and 45% growth in gross order value

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, Swiggy’s quarterly loss widened to ₹1,197 Cr

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. The company is investing heavily in quick commerce (Instamart), which remains a drag on margins

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📉 Technical & Trend Analysis

Current Price: ₹414

DMA 50 / DMA 200: ₹380 / ₹395 — trading above averages, short-term bullish

RSI: 64.5 — approaching overbought zone

MACD: 10.7 — bullish momentum

Volume: Below 1-week average — waning interest

The stock has corrected ~33% from its high of ₹617, but recent price action shows technical strength with a breakout from a cup-and-handle pattern

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✅ Ideal Entry Price Zone

Based on technical and sentiment indicators, the ideal entry zone is

₹385–₹405

This aligns with breakout retest levels and institutional accumulation zones

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RSI below 55 and MACD flattening would offer a better risk-reward setup

📈 Long-Term Holding Strategy

If you already hold the stock

Holding Period: 5–7 years minimum, given the long runway for profitability

Exit Strategy

Partial exit near ₹600–₹650 if valuation overheats or RSI > 75

Full exit if ROE/ROCE remain negative beyond FY27 or cash burn exceeds ₹1,000 Cr for 4+ quarters

Reassess if Instamart fails to reach breakeven by FY27 as guided

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Brokerages like ICICI Securities and Nirmal Bang have target prices of ₹450–₹500, citing improved execution and monetization

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🔍 Summary

Metric Value Verdict

ROE / ROCE -255% / -29.2% Very weak

PEG Ratio N/A Not meaningful

Dividend Yield 0.00% No income potential

Debt to Equity 0.17 Acceptable

RSI / MACD 64.5 / 10.7 Bullish / Overbought

PAT Trend -₹1,197 Cr Deep losses

Swiggy is a speculative long-term bet on India’s digital consumption and quick commerce boom. Ideal for aggressive investors with high risk tolerance and a 5+ year horizon.

Would you like a side-by-side comparison with Zomato (Eternal Ltd) to see how Swiggy stacks up in food-tech and quick commerce?

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Mint | MSN

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Outlook Business

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Business Today | MSN

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