Mumbai, November 13 (IANS). There is enthusiasm in the stock market regarding the positive listing of food delivery company Swiggy. But the volatility in early trade reflects investors’ caution. Market experts gave this statement on Wednesday.
Swiggy shares opened at Rs 420 on the National Stock Exchange (NSE), up 7.7 percent from its issue price of Rs 390. However, at the end of trading, shares of the food delivery company closed at Rs 456 with a rise of 17 percent.
Bajaj Broking Research said it is “optimistic about Swiggy’s ability to capture further market share in India’s emerging food delivery and quick commerce sectors, but the company appears to have a tough path to profitability at the moment.”
Swiggy has shown impressive growth potential, yet consistent losses in recent financial years indicate challenges in the future.
“Investors will have to be prepared for a dynamic journey as the company looks to balance expansion with sustainable financial performance,” the brokerage said.
Swiggy has consistently posted losses on a standalone and consolidation basis in the last three financial years. Total income in FY 2021-22 was Rs 6,119.78 crore, while loss was Rs 3,628.90 crore.
After this, the total income increased to Rs 8714.45 crore in the financial year 2022-23, but the loss also increased to Rs 4,179.31 crore. Total income increased to Rs 11,634.35 crore in FY 2023-24, while net loss reduced to Rs 2,350.24 crore.
The company reported total revenue of Rs 3,310.11 crore and loss of Rs 611.01 crore in the June quarter of FY 2024-25.
Swiggy is yet to declare its results for the second quarter of FY 2025.
Bajaj Broking said that these figures show that the company is continuously registering losses.
Prashant Tapse, Senior Vice President (Research), Mehta Equities Limited, said that investors who have received allotment. They should hold it for the long term without worrying about short-term fluctuations and competition.
He further said that the investors who have not received the allotment. They should wait for the stock to come back to its IPO price.
–IANS
ABS/ABM