Jefferies on Swiggy |Initiate with 'HOLD'| Target Rs 400| LTP Rs 352| Upside 13%

 

Swiggy is regarded as a hyperlocal champion and one of India’s top internet franchises, holding a 45% market share in the food delivery segment. The company is expected to experience high teen growth with margin expansion.

Furthermore, its quick commerce business shows considerable growth potential, though it faces stiff competition in the segment.

Despite these opportunities, Jefferies raises concerns about profitability, forecasting negative EBITDA and free cash flow (FCF) for FY25-27E.