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Investing.com - Jefferies has upgraded Swiggy Ltd (SWIGGY:IN) to Buy from Hold, while raising its price target to INR500.00 from INR380.00.
The upgrade follows Swiggy’s strong first-quarter performance in its food delivery segment, with continued momentum in quick commerce and average order value expansion.
Despite these positive trends, EBITDA margins declined quarter-over-quarter in both segments, which management attributed to higher rider payouts and staff compensation revisions.
Jefferies believes the first quarter marked a profitability trough for Swiggy, citing a pause on dark store expansion in the short term and easing competition as contributing factors.
The investment firm noted that Swiggy remains susceptible to high volatility due to its low margin base, characterizing the upgraded rating as having a "high risk-reward" profile.
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