Zomato and Swiggy, two leading food and grocery delivery platforms in India, have recently achieved record highs in their stock prices. This surge comes amid positive brokerage ratings, highlighting their growth potential in the competitive food delivery market. Here’s an overview of their performance and future outlook.
Zomato and Swiggy: Stock Performance Overview
| Company | Current Share Price (as of Dec 5, 11:15 AM) | All-Time High | Year-to-Date Growth | Brokerage Rating |
|---|---|---|---|---|
| Zomato | ₹296.85 | ₹299.4 | 131% | Outperform (CLSA, Bernstein) |
| Swiggy | ₹567.55 | ₹567.55 | Not specified | Buy (UBS), Stable Duopoly (Motilal Oswal) |
Brokerage Ratings and Price Targets
| Brokerage Firm | Company | Rating | Target Price | Remarks |
|---|---|---|---|---|
| CLSA | Zomato | Outperform | ₹370 | Forecasts a 32% upside from ₹280, cites strong growth levers. |
| Bernstein | Zomato | Outperform | ₹335 | Highlights Zomato’s wider city presence but notes Swiggy’s higher user frequency. |
| Motilal Oswal | Swiggy | Stable Duopoly | Not specified | Sees no major valuation shift unless there is significant growth change. |
| UBS | Swiggy | Buy | Not specified | Cites robust growth in the online food delivery (OFD) segment. |
Key Growth Drivers
- Zomato’s Quick Commerce Lead:
Zomato’s Blinkit reported a 122% YoY increase in Gross Order Value (GOV), outpacing Swiggy’s 76% YoY GOV growth in its Instamart segment. - Swiggy’s Margin Improvements:
Swiggy aims to achieve positive core earnings by December 2025, driven by rapid expansion in quick commerce. Swiggy’s GOV in food delivery rose 15% YoY, while Zomato led with a 21% YoY increase.
Competitive Market Dynamics
| Metric | Zomato | Swiggy |
|---|---|---|
| Quick Commerce GOV | 122% YoY Growth | 76% YoY Growth |
| Food Delivery GOV | 21% YoY Growth | 15% YoY Growth |
| Sequential Growth | 5% | 6% |
| Market Position | 81% larger in GOV | Narrowing margin gap |
Future Outlook
Both companies are positioned for sustained growth, with Zomato leveraging its broader market reach and Swiggy focusing on expanding Instamart. Brokerage firms remain optimistic, predicting continued competition and innovation in India’s food delivery sector.
Conclusion:
Zomato and Swiggy’s market performance reflects the growing demand for online food and grocery delivery in India. With strong backing from leading brokerages and promising growth strategies, both companies are set to redefine the future of food delivery. Investors should monitor these developments for potential opportunities while considering professional advice.