From mint · Vaamanaa Sethi · · 50s
Swiggy Shares Upgraded to Buy
Anand Rathi upgrades Swiggy to 'buy' with 3 reasons.
In brief
Anand Rathi upgrades Swiggy to 'buy' with 3 reasons. Anand Rathi upgraded Swiggy to 'buy' with target price unchanged at ₹310, citing improved profitability and business model shifts. Originally reported by mint.
Rating Upgrade
Anand Rathi upgraded Swiggy to 'buy' with target price unchanged at ₹310.
Profitability Shift
Swiggy improved contribution margin from loss of 5.6% to breaking even in Q1FY27.
First-Party Inventory Model
Swiggy restricted foreign shareholding to 49.5% for Instamart's direct inventory model.
Infrastructure Optimization
Instamart uses 1,171 dark stores in 125 cities to double GOV without physical expansion.
Diversification
Non-grocery categories now account for 30% of Instamart's business with higher margins.
Stock Performance
Swiggy shares declined 15.67% monthly and 41.07% year-to-date.
What matters most
Anand Rathi upgraded Swiggy to 'buy' with target price unchanged at ₹310, citing improved profitability and business model shifts.
