Mumbai, Nov 14 (IANS) Online food delivery and quick commerce company Swiggy shares slipped 7.54 per cent to close at Rs 421.60 on Thursday — just 24 hours after its strong public debut in a bearish market — due to profit booking on higher level.
During the intra-day trading, shares of Swiggy touched Rs 489 on higher side and Rs 418 on the lower side. Trading volume and value in the trading session stood at 5.61 crore and Rs 2,522 crore on the NSE, respectively.
Swiggy’s shares were listed in the stock market on Wednesday at a price of Rs 420 with a premium of 7.69 per cent. Buying was seen in the stock after the listing and at the end of trading, it closed at Rs 464, up 18.97 per cent.
The Rs 11,327 crore IPO of the online food delivery company was open for retail investors between November 6 and 8. The IPO received a mixed response from investors and was subscribed more than 3.50 times.
According to Bajaj Broking, there is a big risk in Swiggy’s business because of tough competition from Zomato, Zepto and new companies coming in the market.
“While there’s optimism about Swiggy’s potential to capture further market share in India’s evolving food delivery and quick commerce segments, the road to profitability may be bumpy,” said Bajaj Broking Research.
Swiggy has shown impressive growth potential, yet persistent losses over recent fiscal years signal challenges ahead.
“Investors may need to brace for a dynamic journey as the company seeks to balance expansion with sustainable financial performance,” added the brokerage.
Swiggy is yet to post its Q2 FY25 results. According to brokerage firms, Swiggy has been posting continuous losses since its inception in 2014. The reason for this is high operational costs.
In the last three financial years, Swiggy has consistently reported losses on a consolidated basis. In the financial year 2021-22, the company’s income was Rs 6,119 crore and during this period the company recorded a loss of Rs 3,628.90 crore.
In the financial year 2022-23, the company’s income was Rs 8,714 crore. During this period the company’s loss increased to Rs 4,179 crore. In the financial year 2023-24, the company’s income increased to Rs 11,634 crore. During this period the company recorded a loss of Rs 2,350 crore.
In the June quarter of the financial year 2024-25, the company recorded a total income of Rs 3,310.11 crore and a net loss of Rs 611.01 crore.
–IANS
avs/na
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
