Swiggy made a subdued debut on Dalal Street, listing at a modest 8% premium over its issue price, following the trend seen with many large IPOs. The company, currently operating at a loss on a consolidated basis and expected to take 2-3 years to reach profitability, has led investors to take a cautious approach and avoid making aggressive investments.
On its listing day, brokerage firms Macquarie and JM Financial initiated coverage on Swiggy but offered sharply contrasting opinions.
The investment landscape for Non-Resident Indians (NRIs) in real estate has undergone a remarkable transformation, from traditional physical assets to modern financial products like Real Estate Investment Trusts (REITs). Sharad Mittal, Founder and CEO of Arnya Real Estate Fund Advisors, highlighted this shift at the recently concluded AIF & PMS Conclave 2.0, noting that regulatory clarity has made these investment avenues more accessible and appealing.
Brokerage firm JM Financial has expressed a preference for Zomato over Swiggy, citing Zomato’s market dominance and strong execution capabilities. The report emphasizes that while Swiggy has made strides in quick commerce with its Instamart vertical, it may still face challenges in establishing a solid foothold in the market.
JM Financial highlights Zomato’s leadership and execution track record, suggesting it holds an advantage over Swiggy. “We would prefer Zomato if asked to pick only one due to its superior execution,” the firm noted in its report.
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