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After a significant sell-off, the markets have shown signs of recovery, with the Sensex and Nifty rallying for five consecutive sessions. However, concerns remain as valuations are still high, and analysts predict muted returns for 2025, citing weak foreign institutional investor flows and a deceleration in growth momentum across sectors.
HSBC has initiated coverage on Swiggy with a 'Hold' rating, while Nuvama has given a 'Buy' recommendation for Zen Tech. Goldman Sachs is optimistic about Westlife, projecting a target of ₹1,045 per share, citing menu interventions and expected same-store sales growth recovery. Citi highlights potential catalysts in the oil and gas sector, including possible GST inclusion for gas and lower CNG excise, while Jefferies notes strong returns for Indian CRO/CDMO stocks, with upcoming legislative actions likely to impact volatility.
Shares of Zomato and Swiggy surged to record highs on December 5, following brokerage upgrades. CLSA raised Zomato's target price to Rs 370, predicting a 32% upside, while Bernstein noted Zomato's broader city presence. Swiggy's Q2 results showed a 30% year-on-year increase in B2C gross order value, with expectations of positive core earnings by December 2025.
PharmEasy continues to negatively impact Prosus’ India portfolio with an internal rate of return (IRR) of -38% in H1FY25, an improvement from -44% the previous year. In contrast, ElasticRun led with a 23% IRR, while Swiggy, PayU, and Meesho each reported 20-21%. Eruditus, despite a lower IRR of 14%, remains the only positive performer in the edtech sector for Prosus.
Swiggy's share price surged 7% to Rs 462, valuing the company at Rs 1.03 trillion, following UBS's initiation of coverage with a "buy" rating and a 12-month price target of Rs 515. UBS highlighted a significant valuation discount compared to Zomato, projecting Swiggy's GMV growth to align with Zomato's in the low-20s over FY24-27E, while improving margins are expected to reach 2.8% by FY27E.
Swiggy's share price surged 7% following UBS's initiation of coverage with a 'buy' rating, citing a price target based on discounted cash flow and multiples. Analysts noted that Swiggy's market share is stabilizing, with volume growth in 2024 aligning with industry trends and improving margins. They project Swiggy's GMV growth from FY24-27E to match Zomato's, with adjusted EBITDA margins reaching 2.8% by FY27E.
Swiggy shares surged 6% to Rs 456 after UBS initiated coverage with a 'buy' rating, projecting a target price of Rs 515, indicating a potential 27% upside. The brokerage noted Swiggy's strong growth prospects and its narrowing margin gap with Zomato, while highlighting areas for improvement in quick commerce.
Swiggy's share price increased for the second consecutive day, rising by 6.3% to Rs 457.95 before settling at Rs 445, a 3.3% gain, amid a flat NSE Nifty 50 index. Of the six analysts covering the company, four recommend a 'buy,' one suggests a 'hold,' and one advises 'sell,' with the average 12-month price target indicating a slight downside of 0.1%.
UBS has initiated coverage on Swiggy with a 'buy' rating and a target price of Rs 515, highlighting the company's growth potential in India's online food delivery and quick commerce sectors. Despite losing market share to Zomato in 2023, Swiggy has made strategic adjustments, aligning its volume growth with industry trends while improving margins. UBS projects Swiggy's online food delivery Gross Merchandise Value to grow at a low-20% CAGR from fiscal 2024 to 2027, matching Zomato's growth trajectory.
Zepto has surpassed Swiggy Instamart to become the second-largest player in the quick commerce sector, according to a report by Motilal Oswal. Blinkit remains the market leader with a 46% share, while Zepto holds 29% and Swiggy Instamart accounts for 25%. Raamdeo Agrawal, chairman of Motilal Oswal, is an investor in both Zepto and Swiggy.

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