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📈 Swiggy Share Price Soars Over 7% – Should You Buy the Stock?
Swiggy, India’s leading food delivery and quick-commerce platform, witnessed a 7% surge in share price on Tuesday, marking its biggest intraday rally in over a month. The sharp uptick has caught the attention of retail and institutional investors alike. But is this the right time to jump in?
Here’s what you need to know.
🔍 What Triggered Swiggy's Share Price Rally?
Several factors appear to have contributed to Swiggy’s strong market performance today:
✅ 1. Positive Analyst Coverage
Recent coverage by brokerages has given a bullish outlook, citing Swiggy’s cost control, operational efficiency, and robust growth in Instamart (its quick-commerce vertical).
✅ 2. IPO Anticipation & Valuation Buzz
With the company reportedly planning to go public by the end of 2025, investors are positioning early to ride the IPO wave. The expected valuation of $12–15 billion is adding fuel to the bullish sentiment.
✅ 3. Strong Q4 Performance Hints
Though not yet disclosed officially, insiders suggest that Q4FY25 earnings could surpass expectations in terms of revenue growth and narrowing losses.
💹 Technical Outlook
| Indicator | Status |
|---|---|
| RSI | 64 (Approaching Overbought) |
| 50-Day Moving Avg | Above baseline |
| Intraday Volume | 2x Average |
Technical analysts indicate short-term momentum, but caution against overbought conditions near the ₹X resistance level (price to be inserted based on current trading).
📊 Swiggy’s Fundamentals at a Glance
| Metric | Latest Estimate (FY25) |
|---|---|
| Revenue | ₹10,000+ crore |
| Gross Order Value (GOV) | ₹80,000 crore+ |
| Loss Reduction | ~40% YoY |
| Market Share | 45% in food delivery, 60% in q-commerce |
The company continues to invest in logistics tech, hyperlocal reach, and premium services, all of which can drive long-term margin expansion.
🛍️ Should You Buy Swiggy Shares Now?
👍 Reasons to Consider Buying:
Strong brand equity and user base
Rapid growth in Instamart and subscription services (Swiggy One)
IPO-bound valuation re-rating potential
Narrowing losses and improved efficiency
👎 Reasons to Be Cautious:
Still unprofitable; cash burn persists
Intense competition from Zomato, Zepto, and ONDC
Regulatory scrutiny on deep discounting
📝 Verdict:
Short-term traders might consider booking gains if already in. Long-term investors could explore staggered entry closer to support levels, keeping the IPO listing as a milestone.
❓ FAQ: Swiggy Share Price and Investment
Q1. Why did Swiggy stock rise by 7% today?
A: The stock rallied on expectations of strong upcoming earnings, favorable analyst outlook, and IPO-related investor interest.
Q2. Is Swiggy a listed company?
A: Swiggy is not publicly listed as of now, but reports suggest it is preparing for an IPO by the end of 2025.
Q3. Should I buy Swiggy shares now?
A: If you're an early investor in pre-IPO rounds or considering entering via private placement, monitor for valuations and profitability trends. Public investors may get access post-IPO.
Q4. How does Swiggy compare to Zomato?
A: Zomato is already listed and profitable in recent quarters. Swiggy leads in Instamart and is catching up in food delivery margins.
Q5. Will Swiggy be a multibagger after IPO?
A: While the growth potential is high, returns will depend on listing valuation, execution post-IPO, and market conditions.
📌 Conclusion
Swiggy’s impressive intraday rally reflects growing investor confidence, especially ahead of its anticipated IPO. While the fundamentals look promising, investors should balance valuation concerns with Swiggy's long-term digital ecosystem growth story.
Reported by Benny on June 4, 2025.