Swiggy Ltd's shares have experienced a 20% surge in the last three trading sessions, recovering from a lackluster market debut.

After reaching a low of Rs 417.2 on November 25, the stock rebounded to Rs 501.7, indicating significant gains.

UBS has initiated coverage on Swiggy with a "Buy" rating, citing the company's improving margins and scale in the competitive online food delivery sector. UBS also mentioned that Swiggy is catching up with its rival Zomato and set a target price of Rs 515 for the stock.

The recent performance reflects growing investor confidence ahead of Swiggy's Q2 results announcement scheduled for December 3. The trading volume has also increased noticeably, indicating heightened market interest in the food delivery firm.