Swiggy Share Price Surges 7% After Morgan Stanley’s ₹405 Target — Should You Buy Now?
📽️ Swiggy Share Price Soars 🚀
Watch the Web Story for a quick visual update on Swiggy's 7% share price rally and expert analysis on whether to invest now.
The Swiggy share price was in the spotlight on June 4, 2025, as the stock surged over 7.3% intraday, reaching ₹357 per share — its highest in the past four weeks. This sharp rally marks Swiggy’s biggest single-day gain in a month, and investor sentiment appears to be shifting as global brokerage Morgan Stanley initiated coverage on the stock with an ‘Overweight’ rating and a price target of ₹405.
But does this rally signal a trend reversal, or is it just a temporary bounce? Let’s explore what’s driving this momentum and whether investors should consider entering at current levels.
Swiggy Share Price Rally: What Triggered the Surge?
Swiggy’s stock, which debuted on the bourses on November 13, 2024, has experienced a rollercoaster ride. After listing at ₹420 — a 7.7% premium over its IPO price of ₹390 — the stock faced persistent selling pressure, dragging it down to an all-time low of ₹297 per share.
However, June began on a strong note for the food-tech and quick commerce giant, as Morgan Stanley projected significant growth in both core food delivery and Q-commerce verticals. The report cited improved execution in Swiggy’s core business and robust investment strategies in emerging segments as reasons for its bullish ₹405 target — representing a potential 13.4% upside from the current price.
Why Morgan Stanley Is Bullish on Swiggy
1. Improved Food Delivery Execution
Swiggy has been regaining market share in the food delivery space. Despite the market slowing down, the brokerage expects gross order value (GOV) growth at a 15.8% CAGR between FY25–28E.
2. Strategic Investment in Quick Commerce
Swiggy’s Q-commerce segment could grow at a 63% CAGR during FY25–28. Morgan Stanley revised India’s Q-commerce TAM to USD 57 billion by 2030, up from USD 42 billion earlier.
3. Attractive Valuation and Upside
The firm values Swiggy’s:
- Food delivery segment at ₹194 per share
- Quick commerce segment at ₹197 per share
This gives a total valuation of ₹391 per share, supporting the ₹405 price target and indicating a 22% upside.
Operational Strength and Turnaround Strategy
Swiggy is actively improving operational efficiency through:
- 10-minute food delivery (Swiggy Bolt)
- Key senior-level hires
- Improved logistics and last-mile delivery
It is expected to reach:
- Contribution margin breakeven by H1FY27
- Adjusted EBITDA breakeven by H2FY29
Despite projected USD 1.2 billion in investment losses, Swiggy's treasury income and food delivery profits are expected to fund growth without dilution risk.
Risks to Watch
- Execution Risk: Weak performance could lead to lost market share.
- Competitive Pressure: Q-commerce competition from Blinkit, Zepto, etc.
- Capital Requirements: If losses mount, more funding may be needed.
Swiggy Share Price Trend Since IPO
| Date | Price | Change |
|---|---|---|
| IPO Price (Nov 2024) | ₹390 | — |
| Listing Price | ₹420 | +7.7% |
| 52-Week Low | ₹297 | -23.8% |
| Current Price (June 4, 2025) | ₹357 | -8.4% from IPO |
Should You Buy Swiggy Shares Now?
If you believe in the long-term growth of food delivery and quick commerce in India, Swiggy presents a compelling opportunity at current levels. With a strong brand and growing addressable market, the company may reward patient investors.
However, investors should proceed cautiously. Q-commerce competition is heating up, and losses could extend longer than projected. Those with a moderate risk appetite may consider a phased investment approach.
Final Thoughts
The recent Swiggy share price rally signals improving confidence in the company’s fundamentals and growth strategy. With strong execution and innovation, Swiggy might be preparing for a turnaround — but investors should stay informed and weigh all factors.
Disclaimer: This article is for informational purposes only. Please consult a SEBI-registered financial advisor before making any investment decisions.
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