Swiggy Shares Soar 8% on Nirmal Bang’s ‘Buy’ Rating, 26%+ Upside Seen
Swiggy shares surged nearly 8% in early trade after Nirmal Bang Institutional Equities initiated coverage on the food delivery platform’s holding company, Eternal, with a ‘Buy’ call. The firm sees a 26%+ upside from current levels, causing a fresh wave of excitement among investors and analysts.
According to the report, Nirmal Bang believes that Swiggy’s sharp focus on cost optimization, growing revenue, and improving delivery logistics could soon push it into profitability. The brokerage has assigned a target price of ₹138, compared to its recent trading value of around ₹109.
Why are Swiggy shares rising now?
The major trigger came after Eternal (the listed parent of Swiggy) posted strong Q1 results, with noticeable progress in both revenue and market share. Swiggy has also narrowed its losses, with the platform steadily gaining ground over arch-rival Zomato.
Tweet Reaction:
CNBCTV18 shares the rise
“Swiggy shares soar 8% after Buy rating from Nirmal Bang, 26%+ upside seen.”
Strong Coverage by Nirmal Bang Boosts Investor Confidence
The ‘Buy’ rating comes with strong reasoning. Nirmal Bang outlined the following factors behind their optimism:
- The food delivery market is set to grow, and Swiggy is well-positioned to capture a large chunk.
- Improved unit economics and operational efficiency.
- Strategic focus on Instamart, Swiggy’s quick-commerce arm, which is expanding at a steady pace.
- Increased order frequency from users and better customer retention.
Nirmal Bang also highlighted Swiggy’s market differentiation, particularly its full-stack logistics approach, which gives it better cost control and a reliable delivery network.
Stockwartt noted
“Swiggy’s Instamart is growing, profitability is in sight, and Nirmal Bang sees value creation happening fast.”
How Does Swiggy Compare with Zomato?
While Zomato has been listed for a longer period and shows consistent performance, Swiggy is catching up fast. Analysts say that Swiggy’s unit cost per order has fallen significantly, and its burn rate is lower than it was a year ago.
Swiggy also has an advantage with Instamart, where Zomato is still building momentum with Blinkit. Investors are watching closely as both giants battle it out for dominance in India’s growing food and grocery delivery market.
Clavik Singh wrote –
“Swiggy might turn out to be the dark horse in the food delivery race. Watch this space!”
What Should Investors Do?
- Nirmal Bang’s Buy rating reflects positive long-term growth expectations.
- Retail investors should monitor earnings, profitability milestones, and user base expansion.
- Short-term traders can ride the current momentum but should stay cautious of volatility.
- Watch for upcoming Instamart performance metrics and expansion plans.
- Compare Swiggy’s valuations vs Zomato to evaluate entry levels.
Is the Upside Realistic or Overstated?
Many experts believe the 26% upside is realistic, especially if Swiggy manages to hit its breakeven target by early 2026. However, there are risks. The IPO lock-in period expiry could bring selling pressure, and any delay in profitability might impact investor sentiment.
Still, the growth potential in India’s urban markets and Swiggy’s aggressive push into tier-2 and tier-3 cities make the case strong. Investors looking for long-term exposure in digital India may find this to be an attractive entry point.
What Does This Mean for the Broader Market?
Swiggy’s performance is not just about one stock. It shows how investors are regaining faith in India’s tech startups, especially after IPOs from Zomato, Mamaearth, and Paytm faced mixed reactions. Swiggy’s numbers and strategy reflect the maturing of the digital business model in India.
This optimism might spread across other tech listings as well, pushing more VC-backed startups to go public in the coming months.
Tweet from The Tradesman:
“Swiggy’s bounceback is big news for India’s startup ecosystem. Tech IPOs aren’t dead yet!”
Final Thoughts
Swiggy’s recent 8% surge highlights strong market confidence driven by positive institutional coverage, especially from firms like Nirmal Bang. The company’s strategic focus on core markets, along with improving unit economics and expansion in Tier II and III cities, shows clear potential for sustained growth.
While there are challenges ahead, including fierce competition and profitability concerns, the long-term upside remains attractive for investors who believe in India’s evolving digital consumption story. As always, investors should weigh all available data, track quarterly performance closely, and invest based on individual risk tolerance and time horizon.
FAQ’S
Not currently, as analysts see more upside based on recent financials and market growth.
No, the recent surge was triggered by Nirmal Bang’s coverage with a 26% upside forecast.
Yes, if you’re a long-term investor willing to ride short-term volatility for future gains.
It isn’t falling right now, but past dips were due to losses and IPO-related uncertainty.
Brokerages see strong upside as Swiggy moves toward profitability and user growth.
Currently, Swiggy is among the most bullish stocks in the food delivery sector.
Yes, its latest numbers and expert ratings suggest a strong rebound is underway.
Yes, analysts believe it could achieve profitability by early 2026.
Insider lock-in periods usually last 6 months post-listing, but exact dates vary by holding.
Disclaimer
This content is for informational purposes only and not financial advice. Always conduct your research.