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Zomato Vs Swiggy Update: These days, the names of two online food delivery and quick commerce companies Zomato and Swiggy are on the lips of every investor in the Indian stock market. Especially after the listing of Swiggy on the stock exchange on 13 November 2024, this discussion has become even more intense. Listed on the stock exchange in July 2021, Zomato has given multibagger returns to its shareholders. In such a situation, the question arises whether Swiggy will also be able to do this feat?
Zomato’s listing is better than Swiggy
Swiggy has raised Rs 11,700 crore from the market at an issue price of Rs 390 per share. Whereas in the year 2021, Zomato had raised Rs 9375 crore through IPO at an issue price of Rs 76. When Swiggy launched its IPO in the first week of November 2024, the market mood was sour due to selling by foreign investors. Swiggy’s IPO could be subscribed only 3.59 times. But when Zomato was listed, despite the Covid era, the enthusiasm in the stock market was high and due to this the IPO was successful in getting filled 38 times. Swiggy’s IPO was listed at Rs 420 with a jump of only 8 per cent and the stock reached Rs 489.40, a jump of 25 per cent from the issue price. Whereas Zomato with an issue price of Rs 76 was listed at Rs 116 with a jump of 53 percent and the stock reached Rs 138 on the same day.
Zomato shares gave multibagger returns
Zomato saw its good and bad days after this. Zomato’s shares fell below its issue price to around Rs 40 in the year 2022. The company acquired quick commerce company Blikint in the year 2022 itself. The loss making company became profitable and Zomato shares closed at Rs 271.36 on Tuesday, November 19, 2024. Zomato stock has given multibagger returns of 257 percent to its shareholders in three and a half years. And if reports of brokerage houses are to be believed, Zomato’s stock has the potential to give even more returns. According to Morgan Stanley, in the bull case, Zomato’s shares may double from the current level i.e. beyond Rs 500 in the next 3 years.
Swiggy will give profit by 2026-27
In such a situation, the question arises whether Swiggy will also make money to its shareholders like Zomato? Motilal Oswal Financial Services said in its report regarding Swiggy that the company has suffered a loss of Rs 23.5 billion in the financial year 2023-24. According to the brokerage house, Swiggy will become a profit making company by the financial year 2026-27. According to the note, Zomato is continuously gaining market share in food delivery but on GOV/MTU basis, Swiggy looks more mature. Swiggy Instamart first stepped into quick commerce but Blinkit has gone far ahead of it and Zepto is also doing better. According to the brokerage house, it is too early to say who will be the winner between Swiggy or Zomato because the war has just started.
Brokerage houses are bullish on Swiggy!
Motilal Oswal has given a target of Rs 475 for Swiggy’s shares, although the stance of the brokerage house is neutral. Many other brokerage houses have also released their coverage report regarding Swiggy’s stock. Macquarie believes that Swiggy’s stock can go up to Rs 700 in the long term. That means the stock can give returns of up to 70 percent from the current level. Macquarie is giving more importance to Swiggy than Zomato. JM Financial has given a target of Rs 470. According to the brokerage house, there will be growth and profits due to the presence of two companies in food delivery. There is huge potential for growth in Quick Commerce Swiggy Instamart. According to the brokerage house, Swiggy will be among the fastest growing companies among the big names related to consumption.
Disclaimer: (The information provided here is being provided for information only. It is important to note here that investment in the market is subject to market risks. Always seek expert advice before investing money as an investor. ABPLive.com does not advise anyone It is never advisable to invest money here.)
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