Swiggy's stock witnessed a significant uptick of nearly 4% during Thursday's trading session, propelled by the company's robust second-quarter financial performance that exceeded market expectations.
Financial Performance Highlights
The food delivery major reported remarkable growth across key metrics. Revenue surged to ₹2,731 crore, marking a substantial 21% quarter-on-quarter increase. Even more impressive was the 26% quarter-on-quarter growth in gross order value (GOV), which reached ₹8,014 crore.
Swiggy's path to profitability appears to be accelerating, with the company reporting a 15% reduction in losses compared to the previous quarter. This improved financial discipline has caught the attention of investors and analysts alike.
What Are Brokers Saying?
Financial experts have been quick to react to Swiggy's strong numbers. Several prominent brokerage firms have issued updated recommendations:
- JM Financial maintains a bullish stance with a 'buy' rating and increased price target
- Goldman Sachs continues to recommend 'buy' with revised upward targets
- Morgan Stanley maintains 'overweight' position on the stock
Market Reaction and Trading Patterns
The market response was immediately positive, with Swiggy shares opening higher and maintaining strong momentum throughout the trading session. The stock reached an intraday high that reflected investor confidence in the company's growth trajectory and improving fundamentals.
Should You Buy, Sell, or Hold?
For existing investors, the current momentum suggests holding positions might be prudent, given the positive earnings momentum and upward revisions in price targets. New investors should consider the company's improving financial metrics and market position in the competitive food delivery space.
Key considerations for investors:
- Strong revenue growth and GOV expansion
- Improving path to profitability with reduced losses
- Positive broker sentiment and upward target revisions
- Competitive positioning in the food delivery market
The company's performance indicates that its strategic initiatives are bearing fruit, making it a stock worth watching in the evolving food tech landscape.
