Swiggy Share Price Target 2025: 32% Per Cent Upside? CLSA Report

Food delivery platform Swiggy is set for substantial growth, according to a market report by CLSA. In its latest report, CLSA highlighted the strength of the company and said that the Swiggy stock may outperform in the near future.

Swiggy Share Price Target 2025

According to CLSA, the target price of Swiggy share is Rs 708. Against the closing price of Rs 541 (as of Friday, January 3), the potential upside in Swiggy share in the near term could be about 32 per cent. CLSA analysts expect Swiggy to benefit from India’s rapidly expanding food delivery and quick commerce markets, which are projected to grow significantly over the next few years.

CLSA On Swiggy: Path Ahead

India’s food delivery and quick commerce industries are on track to see impressive growth, with the total addressable market (TAM) for food delivery estimated to reach US$16bn by FY27, and quick commerce expected to grow to US$27bn by the same time. This offers Swiggy, which already commands a significant share, substantial room for expansion. Swiggy’s combined gross order value (GOV) for both food delivery and quick commerce was projected to be US$7bn in FY24, and the company is expected to see its GOV and revenue grow at compound annual growth rates (CAGR) of 43 per cent and 32 per cent respectively through FY27.

Execution and Profitability

While Swiggy’s innovation is widely acknowledged, questions have been raised about whether its execution can live up to its bold ideas. The CLSA report expresses confidence that Swiggy will succeed in scaling its operations, thanks to a strong management team that is poised to capitalize on the company's existing market strengths. This execution improvement, combined with accelerating growth and profitability, positions Swiggy to thrive, the report said.