Swiggy shares rallied as much as 6.6% to hit an intra-day high of Rs 534.80 after the company’s net loss narrowed marginally. The company reported a net loss narrowed by 5% year-on-year to Rs 657 crore in Q2 FY25 from Rs 625.5 crore in Q2 FY24.
The company’s revenue stood at Rs 3,601.5 crore for the quarter ending September 2024, a growth of 30% on year to Rs 2,763.3 crore in the same period a year ago.
Swiggy posted its first earnings since the company got listed on the bourses on November 13. The food delivery firm’s IPO was opened on November 06 and got subscribed 3.59 times while the retail section was booked 1.14 times
JM Financial Services on Swiggy
According to the brokerage firm, Swiggy’s results were decent as most operating metrics saw sequential improvement barring a couple that led to a miss on profits. In MTU this led to sequential GOV growth of 5.6%, which was in line with JM Financial’s expectations. However, the adjusted EBITDA margin (as per cent of GOV) at 1.6% was below the brokerage’s expectation of 1.8% due to lower than expected take-rate. It has maintained a “Buy” rating on the stock with a target price of Rs 550.
Elara Securities on Swiggy
Elara Securities said that Swiggy reported an ordinary Q2, with gross order value (GOV) for the Food Delivery and Quick Commerce segments up 14.6% YoY and 75.5% YoY, respectively. These are much lower than its peer, Zomato.
“We continue to believe that scale discount of 30-35% in business and valuation multiple discount of 20% may remain for Swiggy despite better execution, as quick commerce losses continue to be high at Rs 360 crore (in Q2 FY25),” said the brokerage firm.
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