Shares of foodtech major Swiggy saw a strong rally in today’s (February 3) intraday trading session on the Bombay Stock Exchange (BSE), soaring by 5.4% to INR 459 per share. This upward movement follows Kotak Institutional Equities’ latest recommendation, where the brokerage initiated a ‘buy’ rating on Swiggy’s stock and assigned a fair value (FV) of INR 500.
The brokerage firm cited multiple factors supporting its positive outlook on Swiggy, including its well-established market position, steady revenue growth, and a favorable industry landscape. Kotak Institutional Equities believes that Swiggy is well-positioned to capitalize on India’s growing food delivery market, which continues to see strong consumer demand and evolving digital trends. The firm also highlighted that Swiggy’s ability to leverage its existing customer base, optimize delivery operations, and enhance user experience would drive long-term value creation.
Additionally, the brokerage emphasized that Swiggy operates in a largely duopolistic market, competing primarily with Zomato. This stable competitive environment allows both players to focus on profitability and operational efficiency rather than engaging in aggressive discounting wars. Kotak expects this dynamic to support sustained revenue growth and margin expansion for Swiggy in the coming years.
Swiggy, which has diversified beyond food delivery with its grocery and quick commerce vertical, Instamart, has been steadily improving its financial metrics. The company has been focusing on cost optimization and revenue diversification, leading to better unit economics. Investors remain optimistic about Swiggy’s ability to achieve profitability while maintaining a strong growth trajectory in the Indian foodtech ecosystem.
With a positive recommendation from Kotak Institutional Equities and a fair value estimate of INR 500 per share, market sentiment around Swiggy remains strong. If the company continues to demonstrate financial resilience and operational efficiency, it is well-positioned for further stock appreciation in the near future.
 intraday trading session on the Bombay Stock Exchange ...){kind=link}