Swiggy, one of the largest food delivery services in India, saw its share value rise by 7% after Morgan Stanley gave it an ‘Overweight’ rating. A global investor group supports Swiggy’s strong market position and plans for long-term growth. This positive outlook has attracted more investors to the company. Morgan Stanley’s support is important as Swiggy gets ready for its highly awaited initial public offering (IPO). The firm also set a price target that indicates good growth potential from current levels, boosting the stock’s momentum.
Why Morgan Stanley Is Bullish on Swiggy
Morgan Stanley has given Swiggy an ‘Overweight’ rating because the company is well-positioned in the market and is quickly growing in smaller cities. Swiggy is also expanding into fast delivery services with Instamart. The firm pointed out that Swiggy’s efficient delivery network, better finances, and ability to keep customers are important for making profits in the future.
The report also mentioned that Swiggy’s smart investments in ghost kitchens, using AI for better delivery, and loyalty programs like Swiggy One help the company gain a competitive edge.
Investor Optimism Ahead of IPO
This development comes amid growing excitement around Swiggy’s proposed IPO, expected in late 2025. The company has reportedly filed confidential documents with the Securities and Exchange Board of India (SEBI) and is working with top investment banks for its listing.
The rally in share value, even in the unlisted market, reflects market optimism and a potential re-rating of India’s consumer tech sector. Swiggy’s valuation is estimated at around $10 billion, and the IPO could be a litmus test for investor appetite in Indian startups post-Zomato’s public listing.
What This Means for the Food Delivery Sector
Swiggy’s market performance, buoyed by the Morgan Stanley rating, signals a positive outlook for India’s online food delivery and quick commerce sectors. Competitors like Zomato and Zepto may also benefit from the broader bullish sentiment in the market.
As Swiggy prepares for its next growth phase, this strong institutional backing sets the tone for its future, placing it among the top contenders in India’s digital economy landscape.
