Swiggy Limited (NSE:SWIGGY): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at Swiggy Limited's (NSE:SWIGGY) future prospects. Swiggy Limited operates Swiggy, a platform to browse, select, order, and pay for food delivery in India. The ₹964b market-cap company posted a loss in its most recent financial year of ₹31b and a latest trailing-twelve-month loss of ₹42b leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Swiggy's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 25 of the Indian Hospitality analysts is that Swiggy is on the verge of breakeven. They expect the company to post a final loss in 2027, before turning a profit of ₹1.8b in 2028. So, the company is predicted to breakeven approximately 3 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2028? Working backwards from analyst estimates, it turns out that they expect the company to grow 71% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Swiggy given that this is a high-level summary, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Swiggy

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 1.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Swiggy which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Swiggy, take a look at Swiggy's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further examine:

1. Valuation: What is Swiggy worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Swiggy is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Swiggy’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.