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Swiggy Limited (NSE:SWIGGY) Just Reported Earnings, And Analysts Cut Their Target Price
One of the biggest stories of last week was how Swiggy Limited (NSE:SWIGGY) shares plunged 25% in the week since its latest quarterly results, closing yesterday at ₹176. The results don't look great, especially considering that statutory losses grew 12% to₹3.45 per share. Revenues of ₹75,710,000,000 did beat expectations by 2.9%, but it looks like a bit of a cold comfort. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Swiggy after the latest results.
Taking into account the latest results, the current consensus from Swiggy's 26 analysts is for revenues of ₹307.9b in 2027. This would reflect a notable 14% increase on its revenue over the past 12 months. Losses are forecast to narrow 5.7% to ₹12.95 per share. Before this latest report, the consensus had been expecting revenues of ₹308.0b and ₹11.12 per share in losses. So it's pretty clear the analysts have mixed opinions on Swiggy even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase in per-share losses.
Check out our latest analysis for Swiggy
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 15% to ₹308, with the analysts signalling that growing losses would be a definite concern. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Swiggy, with the most bullish analyst valuing it at ₹460 and the most bearish at ₹200 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Swiggy's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Swiggy's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 31% growth on an annualised basis. This is compared to a historical growth rate of 42% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 19% per year. So it's pretty clear that, while Swiggy's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Swiggy's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Swiggy analysts - going out to 2029, and you can see them free on our platform here.
We also provide an overview of the Swiggy Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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