Rs 325 or Rs 470? Swiggy share price targets leave investors confused after listing
[hfe_template id='11223']
[ad_1]
Like most other big IPOs, Swiggy too made a muted debut on Dalal Street by listing at a small premium of 8% over its issue price. Since Swiggy is currently loss-making at consolidated level and believed to be at least 2-3 years away from PAT level break-even, investors are refraining from making bold bets. After listing, Swiggy shares jumped 9% to Rs 449 on BSE with its market capitalization crossing the Rs 1 lakh crore mark. On its listing day, brokerage firms - Macquarie and JM Financial - became the first ones to initiate coverage on the debutant but came out with polar opposite views. Macquarie's initiating coverage report gave it an underperform rating with a target price of Rs 325, which indicates downside potential of 17% from IPO issue price of Rs 390. While admitting that the food-tech firm has a long runway ahead, it warned about a bumpy winding path to profit. The brokerage expects Swiggy's group EBIT to break-even only...