Swiggy hits fresh 52-week low post weak Q3 earnings; Macquarie sees over 22% potential downside

Shares of nutrient transportation level Swiggy tumbled sharply by arsenic overmuch arsenic 7.4 per cent successful Thursday's commercialized (February 6) hitting a caller 52-week debased terms of Rs 387M after the company's anemic acceptable of net for the December quarter. For the reappraisal quarter, the company's consolidated nett nonaccomplishment widened to Rs 799 crore arsenic against Rs 574.4 crore successful the corresponding play of the erstwhile fiscal year. In the preceding September quarter, the company's nonaccomplishment was reported astatine Rs 625.5 crore.

Revenue from operations, however, surged to Rs 3,993 crore successful examination to Rs 3,048.6 crore reported successful Q3FY24, marking a 31 per cent year-on-year rise. The gross connected a sequential basis grew 10.9 per cent. 

Also, EBITDA nonaccomplishment astatine the new-age institution expanded from Rs 554.3 crore successful the September 4th to Rs 725.8 crore successful the 4th ended December 31, 2024.

In Q3, Swiggy’s Gross Order Value (GOV) grew 38 per cent YoY to Rs 12,165 crore, portion the consolidated adjusted EBITDA nonaccomplishment reduced by astir 2 per cent YoY to Rs 490 crore but roseate Rs 149 Cr QoQ, noted the company's release.

Here's however planetary brokerages presumption Swiggy aft its Q3 show

Hong Kong-based planetary brokerage CLSA has continued with its 'Accumulate' standing connected the banal with the people slashed to Rs 726 from Rs 750. The brokerage underscored that nutrient transportation maturation astatine the institution was driven by Bolt, the company's 10-minute nutrient transportation service.

Further, according to the brokerage, successful the Quick Commerce conception (QC), Gross Order Value oregon GOV was better-than-estimates, portion the publication borderline disappointed.

Dark store & metropolis expansion, however, continues, it added. 

Meanwhile, JP Morgan has besides reiterated its erstwhile 'overweight' telephone with the people slashed to Rs 620 from Rs 730 earlier.

Macquarie, however, having a bearish outlook, maintained an 'Underperform' standing with the people pegged astatine Rs 325, implying a imaginable downside of implicit 22 per cent. The brokerage pointed retired that the Quick commerce economics person been meaningfully challenged, with the wider-than-expected nett nonaccomplishment successful the segment.

Also, the brokerage stated that web enlargement and competitory strength impacted margins astatine the nutrient transportation major. The brokerage noted that the play of hyper-competition is expected to past for a fewer much quarters. 

Further, it added that the company's nutrient transportation concern should realize margin guidance implicit a while. The brokerage successful the space, prefers Zomato implicit Swiggy.

Bernstein besides has maintained an 'outperform' telephone connected the banal with the people slashed to Rs 575 from Rs 635 earlier.