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Motilal Oswal Upgrades Swiggy to BUY, Sets Target at Rs 550 Amid Growth Surge
Motilal Oswal upgraded Swiggy to BUY with a target price of Rs 550, driven by a surge in food delivery growth and improved unit economics in quick commerce.
- Motilal Oswals upgrade of Swiggy to BUY reflects a significant growth surge in the food delivery sector, supported by rising average order values in quick commerce as of September 2023.
- The easing competitive intensity and a halt in dark store expansion provide Swiggy with a clearer path to breakeven, enhancing investor confidence ahead of its performance on the Bombay Stock Exchange.
- Swiggys strategic focus on improving execution and its robust growth metrics in the food delivery business indicate a promising outlook for the companys market position and profitability.
Why It Matters
This upgrade is significant as it highlights Swiggys potential to solidify its market leadership amid changing dynamics in the food delivery industry, reflecting broader trends in consumer behavior and competition in Indias quick commerce landscape.