Food delivery companies have come into focus given Swiggy’s recent debut and share movement after listing. So far Zomato was the only listed entity in this space. With Swiggy’s entry, there is no doubt increased competition in that space.
The question then is what’s the better stock to bet on at current levels. Do valuations support Zomato or would it be appropriate for investors to put their money in the newly listed Swiggy shares?
Here is a quick comparison of the valuation of both the Swiggy and Zomato shares –
Swiggy – Zomato : Valuation table
Motilal Oswal Initiates Coverage on Swiggy
In its latest report on Swiggy, Motilal Oswal has initiated coverage with a ‘Neutral’ rating and a target price of Rs 475 per share. The brokerage sees potential in Swiggy’s position to expand its customer base, boost order volumes and values, and improve both unit economics and profitability.
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Motilal Oswal highlights that Swiggy’s unified platform has become a key tool for urban consumers, offering both food delivery and grocery services within a single app.
This integrated approach allows Swiggy to leverage a combination of convenience, high-frequency usage, and customer loyalty, which makes it a strong competitor in the sector.
Although Zomato currently leads in food delivery and quick commerce, Swiggy’s all-in-one app model promotes cross-utilization across services, enhancing its operational efficiency.
Quick Commerce Opportunity for Swiggy
Motilal Oswal views quick commerce as a transformative opportunity, presenting Swiggy with the chance to redefine how Indian consumers shop for essentials and other goods.
The brokerage believes Swiggy has the potential to rank among the top three players in this fast-growing market segment, driven by demand for fast and convenient delivery services.
Challenges and Competitive Landscape
Despite Swiggy’s innovative approach and role as a pioneer in both food delivery and quick commerce, Motilal Oswal notes that Swiggy has seen some erosion in its leadership position.
Brokerage view on Zomato
Which is a better investment opportunity: Zomato or Swiggy ?
Motilal Oswal said that the competition between Swiggy and Zomato is intensifying, with Zomato currently holding the lead across both food delivery and quick commerce—two critical areas where both companies are vying for dominance.
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