Swiggy’s shares surged over 7% to INR 357.55 during the intraday trading session on the BSE today following Morgan Stanley’s initiation of coverage with an ‘overweight’ rating.

With a rise in its share price, Swiggy’s market capitalisation stood at INR 88,836 Cr with more than 2.61 Cr shares traded hands by 1:05 PM.

At the time of writing, the stock pared some of its gains and was trading 6.9% higher than its previous close of INR 333.40 on the BSE.

Morgan Stanley raised the price target for Swiggy’s stock by 21.5% (from the previous closing price) to INR 405.

The brokerage firm said that its rating for the stock is based on Swiggy’s improving execution in food delivery, expanding quick-commerce TAM (total addressable market) and aggressive investments.

While Swiggy has lost nearly 34% on a year-to-date (YTD) basis, it has shown improvement in the last one month by gaining close to 4% at the current market price (1:05 PM).

The spike in its share price today also coincides with a surge in the benchmark indices. NSE Nifty was trading 0.28% higher at 24,612.35 and Sensex 0.32% up at 80,999.66 at the time of filing.

The brokerage firm expects Swigy’s current market share trends to sustain and the food delivery business to grow at a 15.8% CAGR (F25-28).

In the quick commerce segment, Morgan Stanley anticipates an overall TAM growth which can help Swiggy regain some market share and grow gross order value (GOV) at a 63% CAGR, F25-28.

“Revising quick commerce TAM estimates higher, to US$57bn by 2030, and assuming Swiggy maintains its market share,” it said.

The brokerage firm noted that its relative order of preference favours Eternal over Swiggy. It stated that slightly over the next few years, from about 33% now to around 37% by fiscal year 2028.

On the financial front, Swiggy’s consolidated net loss increased 95% year-on-year (YoY) to INR 1,081.2 Cr in the fourth quarter (Q4) of the financial year 2025 (FY25) as quick commerce expansion weighed on the bottom line. On a sequential basis, the company’s loss jumped 35% from INR 799 Cr.

Operating revenue marked a healthy uptick during the quarter under review. The metric stood at INR 4,410 Cr, up 45% from INR 3,045.6 Cr in the year-ago quarter. On a quarter on quarter (QoQ) basis, the company’s top line expanded 10% from INR 3,993.1 Cr.

Notably, the , as per estimates by Morgan Stanley. It had earlier projected the TAM for the 10-minute delivery format at $42 Bn.

The post appeared first on .