Stocks to Buy: Swiggy Limited and Zomato Limited in Focus

Shares of online food delivery companies Swiggy and Zomato have witnessed a significant surge in recent days. Brokerage firms are positive about quick commerce stocks like these and are recommending them for investment. Domestic brokerage firm ICICI Securities has projected a potential upside of up to 126% for these stocks.

On Tuesday, Zomato’s stock climbed 3% during trading, reaching ₹228, while Swiggy’s stock surged 7%, touching ₹347.

Target Price

ICICI Securities has reiterated its ‘Buy’ rating for both stocks, setting a target price of ₹740 for Swiggy and ₹310 for Zomato. This indicates a potential gain of 127% for Swiggy from its previous closing price of ₹326.40, while Zomato could rise by 40% from its last close of ₹222.05.

In its report, ICICI Securities noted that ground-level research suggests item-level discounts have surpassed their peak levels observed between November 2024 and January 2025. Although discounts are still in place, companies are now focusing more on encouraging higher order values. The research also indicated a reduction in performance marketing expenses by quick commerce platforms. The brokerage firm emphasized that the valuation of quick commerce businesses remains attractive for investors with an investment horizon of over a year.

Out of the 17 analysts covering Swiggy, 12 have given a “Buy” rating, two have given a “Hold” rating, and three have given a “Sell” rating. Meanwhile, out of the 30 analysts covering Zomato, 25 have given a “Buy” rating, one has given a “Hold” rating, and four have given a “Sell” rating. Notably, Swiggy’s shares are still trading below their IPO price of ₹390, while Zomato’s shares are more than 30% below their highest price of ₹304.