Swiggy Share Price: On June 4, 2025 (Wednesday), Swiggy’s stock has seen a tremendous jump. During intraday trading, the company’s stock has registered a gain of 7.3%, reaching ₹ 357 per share, which is the highest level in the last four weeks. This has been Swiggy’s biggest single-day gain so far in a month.
The big reason for this rally is Morgan Stanley’s confidence in Swiggy. The global brokerage firm has given an ‘Overweight’ rating to Swiggy and has given a target price of ₹ 405, which is 22% higher than Monday’s closing price. The company has gained strength due to the return of investors’ confidence. Can this be a great opportunity for investors? Stay with us till the end to know this.
Morgan Stanley’s trust: Why is Swiggy’s stock booming?
Morgan Stanley has a lot of confidence in Swiggy as the company is showing strong performance in both food delivery and quick commerce (Q-commerce) segments. Despite the slowdown in India’s food delivery market, Swiggy has increased its market share in the last few quarters. Brokerage firms believe that the gross order value (GOV) of Swiggy’s food delivery business will grow at a strong CAGR of 15.8% from FY25 to FY28, along with improvement in profit margins.
But the real buzz is about Swiggy’s quick commerce segment, which has the potential for rapid growth. According to Morgan Stanley, the GOV of Swiggy’s Q-commerce segment can grow at a huge CAGR of 63% during the same period, due to strategic investments and increasing number of new customers. The brokerage estimates the total addressable market (TAM) of India’s Q-commerce market to be $57 billion by 2030, up from $42 billion previously. Swiggy is also expected to capture 22% market share by FY31.
Quick commerce: A game-changer for Swiggy
Morgan Stanley has the highest expectations from Swiggy’s quick commerce business, led by the Instamart platform. The brokerage believes the segment’s contribution margin will break-even by the first half of FY27, and adjusted EBITDA break-even could come by the second half of FY29. However, this growth comes at a price—the company’s total losses during the investment phase are estimated to be over $1.2 billion. Still, Morgan Stanley says the market is focusing too much on Swiggy’s cash burn and underestimating the potential of its Q-commerce business. The brokerage has valued this segment at ₹ 197 per share, which is almost equal to the food delivery segment’s valuation of ₹ 194 per share.
Swiggy’s Financial Strength and Strategic Moves
Swiggy’s balance sheet is quite strong, mainly due to the profits and treasury income from the food delivery business. This has helped the company not worry about funding its quick commerce (Q-commerce) expansion, and there is no risk of share dilution at present. Also, Swiggy has recently introduced some innovative offerings, such as the 10-minute food delivery service “Bolt”, and senior level hiring to increase operational efficiency. All these efforts show that Swiggy wants to remain a market leader even in this era of competition.
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Risks to watch out for
Although the outlook is positive, Morgan Stanley warns that Swiggy may face execution risk. If performance remains weak, market share in both food delivery and Q-commerce may fall. Especially the Q-commerce segment, which is still heavily invested, may give more losses due to competition. In such a situation, extra capital may be needed.
The ups and downs of Swiggy’s stock
Swiggy’s stock has been quite volatile since its listing (13 November 2024). It was listed at ₹420 (at a 7.7% premium) against the IPO price of ₹390, but due to continuous selling pressure, it fell to an all-time low of ₹297. After a four-month decline, it gained 5% in May 2025, and has seen a 7% rally so far in June. However, it is still trading 16.7% below the IPO price and 10.25% below the listing price.
What will happen to Swiggy next?
Morgan Stanley’s bullish view and Swiggy’s focus on Q-commerce show that the company can take advantage of India’s fast-growing online food delivery and grocery market. Investor confidence also appears to be returning, as is evident from the recent rally in the stock. But managing competition and controlling losses in Q-commerce will be the key to maintaining this momentum.
Disclaimer: These views and suggestions are based on analyst reports, and do not reflect the opinion of prosperpocket. Please seek advice from certified financial experts before investing.
