Swiggy Share Price: The stock of online food distribution and instant commerce company Swiggy hit its historic low for the first time since listing in the third quarter of fiscal year 2024-25. On Thursday, Swiggy’s stock opened at Rs 387.95, falling more than 7 per cent, and then fell to Rs 387, down from an issue price of Rs 390 in the company’s IPO. Swiggy shares are currently trading at Rs 395.40, down 5.43 per cent.
Why did Swiggy’s shares fall?
Swiggy has reported a loss of Rs 800 crore in the third quarter of the current financial year, compared to a loss of Rs 524 crore in the same quarter a year ago. Increasing competition in online food delivery and instant commerce, as well as the expansion of the dark store, has weighed on the company’s margins, and it is believed that this challenge could continue in the next quarter.
The quarterly results were disappointing
On Wednesday, Swiggy announced its quarterly results. The company said it had incurred a loss of Rs 799 crore in the third quarter, up from Rs 574 crore in the same quarter last year. However, the company’s revenue has seen an increase in this period and jumped 31 per cent to Rs 3993 crore. The company’s revenue in the last financial year was Rs 3049 crore. Zomato also disappointed the market with its third quarter results and the company’s profit was Rs 59 crore, down 57 per cent year-on-year.
Shares fall by 40%
The brokerage house has a mixed stance on Swiggy’s stock. UBS has advised investors to buy the stock for the target of Rs 515. While Macquarie believes the stock will underperform and Macquarie has given a target price of Rs 325. Swiggy’s stock is now down 40 per cent from its all-time high of Rs 617.