Swiggy: Record Lows, Heavy Losses, Weak Momentum

closed at ₹178.89 today, about 1.2% above yesterday’s close of ₹176.72. That is a modest bounce, but the stock remains about 15% below its pre-results level of ₹211.30 and only about 2.7% above its all-time low of ₹174.20. The shares are stabilising, but losses are still deep and a clear turnaround has yet to emerge. Price action: The stock fell as much as 14.6% on Oct 23 after its Q2 results and lost about 16% over the week to Oct 30. It is down about 25.6% in a month and about 56% in a year. Valuation context: At ₹178.89 it trades about 54% below its ₹390 IPO price and about 58% below its 52-week high of ₹421.60. Market cap is roughly ₹49,400 crore, or about 2.9 times book value. Q2 FY27 results: Revenue was ₹7,783 crore, but the company posted a net loss of ₹922 crore. Analysts trimmed their estimates, expecting a longer path to profitability. Analyst targets cut: Jefferies lowered its target to ₹330 from ₹435 and calls it a high risk-reward stock. A domestic brokerage kept its Buy but cut its target to ₹340 from ₹355. Analysts note Swiggy is growing slower than Eternal in both food delivery and quick commerce. Foreign selling: FII holding fell to 8.55% in the September quarter from 13.96% in June, adding to the pressure on the stock. Profitability: ROE is about -29% and ROCE about -24%, so valuation has no earnings to anchor it.