Swiggy, the newly-listed stock, has seen a positive market debut with analysts from Macquarie
and JM Financials initiating coverage. Experts suggest that investors should hold onto the stock,
maintaining a stop loss around ₹390, which is the upper end of its issue price.
On its first day of listing, Swiggy’s shares opened with a strong premium. On the BSE, it
debuted at ₹412 per share, while on the NSE, it opened at ₹420, offering a 5.5% gain for those
who received allotments. The stock continued its upward momentum, reaching an intraday high
of ₹449 on the NSE, reflecting strong post-listing demand.
Analysts believe this strong debut indicates robust demand for the company, with positive
market sentiment. They advise those who were allotted shares to hold for the long term, despite
potential short-term volatility. Fresh investors, however, are encouraged to wait for potential
profit-booking before entering.
Prashanth Tapse, Senior VP – Research at Mehta Equities, remarked that despite a lackluster
market sentiment and a muted investor response overall, Swiggy’s listing exceeded
expectations. He views the price holding above ₹390 as a positive signal, similar to the
post-listing performance of Zomato. Tapse recommends long-term holding for allotted investors,
acknowledging the sector’s competitive pressures, while suggesting that new investors wait for
the stock price to stabilize before buying closer to the issue price.
Shivani Nyati, Head of Wealth at Swastika Investmart, advises a balanced approach,
considering both the growth potential and risks. She recommends holding shares but suggests
setting a stop loss at the issue price for risk management.
Akriti Mehrotra, Research Analyst at StoxBox, highlighted that while Swiggy has faced
consistent losses, it has demonstrated steady revenue growth. The company’s strategy to
expand its dark store network, optimize logistics, and diversify its offerings positions it for future
profitability. Mehrotra recommends holding Swiggy shares, noting strong growth potential for
medium- to long-term investors.
