Swiggy share price target cut by Motilal Oswal on longer path to profitability after Q2 results
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- ✓Motilal Oswal cut Swiggy’s price target to ₹280 from ₹360 after the company reported a net loss for the September quarter.
- ✓The brokerage said, "Lower growth is expected to delay operating leverage and extend the period of losses." Swiggy now faces slower growth compared to rivals in quick commerce.
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- India Economy
Shares of food delivery and quick-commerce aggregator Swiggy Ltd. will be reacting to its September quarter results on Friday, October 23. The numbers were reported after market hours on Thursday, where the company reported yet another net loss.
Brokerage firm Motilal Oswal has cut its price target on Swiggy to ₹280 from ₹360 earlier, although it still maintained its "buy" recommendation on the stock. The revised price target implies an upside potential of 32% from Thursday's closing price, which is close to record low levels for the stock.
Motilal Oswal's revised price target is also below Swiggy's IPO price of ₹390.
Swiggy is now growing slower than Eternal on both the Food Delivery and the Quick Commerce front, according to the firm. For the first half of this financial year, Eternal's Gross Order Value (GOV) in the Food Delivery business grew 21.7%, while for Swiggy, that figure stood at 17.5%.
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