Swiggy, a major player in the quick commerce sector, has been given a Neutral rating by Motilal Oswal. Motilal Oswal initiated coverage on November 19 and set a target price of Rs 475 per share.

According to Motilal Oswal, Swiggy"s food delivery business has achieved stable unit economics and is expected to see gradual margin improvement. Swiggy"s all-in-one app strategy is seen as a significant advantage in the competitive landscape dominated by Zomato, as it promotes strong cross-utilization across services and enhances operational efficiency.

Following the rating announcement, Swiggy"s shares rose by 1.6% in early trading. Since its recent listing, Swiggy"s shares have maintained a flat trajectory, and its market capitalization is nearing Rs 1 lakh crore. Motilal Oswal views the quick commerce boom as a unique opportunity that could transform India"s organized retail sector. They believe Swiggy has the potential to become one of the top three players in this rapidly expanding market.