{"id":5298,"date":"2025-03-13T15:48:05","date_gmt":"2025-03-13T10:18:05","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=5298"},"modified":"2025-03-13T15:48:05","modified_gmt":"2025-03-13T10:18:05","slug":"zomato-vs-swiggy-which-stock-holds-better-value-after-recent-market-correction","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/zomato-vs-swiggy-which-stock-holds-better-value-after-recent-market-correction\/","title":{"rendered":"Zomato vs Swiggy: Which Stock Holds Better Value After Recent Market Correction?"},"content":{"rendered":"<h4 data-start=\"92\" data-end=\"118\">Highlights:<\/h4>\n<ul data-start=\"119\" data-end=\"644\">\n<li data-start=\"119\" data-end=\"199\">Zomato stock is trading 32.6% below its peak, currently at \u20b9205.<\/li>\n<li data-start=\"200\" data-end=\"308\">Swiggy shares have dropped 47% from highs, trading at \u20b9356, below its IPO price of \u20b9390.<\/li>\n<li data-start=\"309\" data-end=\"422\">Quick Commerce (QC) competition is heating up with new entrants like Flipkart Minutes and Amazon Now.<\/li>\n<li data-start=\"423\" data-end=\"516\">JM Financial prefers Zomato over Swiggy, citing profitability and execution edge.<\/li>\n<li data-start=\"517\" data-end=\"644\">The brokerage sets a target price of \u20b9280 for Zomato (34.6% upside) and \u20b9500 for Swiggy (41.7% upside).<\/li>\n<\/ul>\n<h3 data-start=\"651\" data-end=\"712\">Zomato &amp; Swiggy Stocks Slide Amid Market Correction<\/h3>\n<p data-start=\"714\" data-end=\"912\">Shares of India\u2019s two leading food delivery aggregators\u2014Zomato and Swiggy\u2014have witnessed sharp declines, slipping to multi-month lows as broader market corrections weigh on investor sentiment.<\/p>\n<p data-start=\"914\" data-end=\"1125\">While Zomato is trading at \u20b9205, 32.6% below its all-time high of \u20b9304.70, Swiggy\u2019s stock has seen an even sharper correction of 47%, currently at \u20b9356, falling below its IPO price of \u20b9390.<\/p>\n<p data-start=\"1127\" data-end=\"1405\">Investors have turned cautious on new-age tech stocks, particularly as concerns over valuation, profitability, and rising competition in quick commerce (QC) grow. Both companies are aggressively expanding their dark store networks, impacting short-term financials.<\/p>\n<h3 data-start=\"1407\" data-end=\"1482\">Intensifying Competition from Flipkart &amp; Amazon in Quick Commerce<\/h3>\n<p data-start=\"1484\" data-end=\"1774\">Zomato and Swiggy face new competition in quick commerce, with Flipkart Minutes and Amazon Now entering the space. These new entrants are rapidly scaling their operations in major cities, challenging the dominance of Blinkit (Zomato\u2019s QC arm) and Swiggy Instamart.<\/p>\n<p data-start=\"1776\" data-end=\"1851\">However, analysts believe incumbent players hold an advantage due to:<\/p>\n<ul data-start=\"1852\" data-end=\"2003\">\n<li data-start=\"1852\" data-end=\"1901\">Higher brand recall and customer loyalty.<\/li>\n<li data-start=\"1902\" data-end=\"1958\">Deeper insights into micro-market demand trends.<\/li>\n<li data-start=\"1959\" data-end=\"2003\">Strong last-mile delivery execution.<\/li>\n<\/ul>\n<p data-start=\"2005\" data-end=\"2211\">JM Financial believes new competitors will struggle to match Zomato and Swiggy\u2019s scale. The brokerage notes that QC winners will be determined by execution strength rather than balance sheet size.<\/p>\n<h3 data-start=\"2213\" data-end=\"2269\">Zomato Maintains Edge Over Swiggy\u2014JM Financial<\/h3>\n<p data-start=\"2271\" data-end=\"2433\">Despite recent stock declines, JM Financial remains bullish on Zomato, citing its strong market leadership in GOV (Gross Order Value) and revenue terms.<\/p>\n<p data-start=\"2435\" data-end=\"2457\">The firm highlights:<\/p>\n<ul data-start=\"2458\" data-end=\"2832\">\n<li data-start=\"2458\" data-end=\"2568\">Zomato is India\u2019s only hyperlocal delivery company generating free cash flows at a consolidated level.<\/li>\n<li data-start=\"2569\" data-end=\"2698\">The company has strong execution capabilities, giving it an edge in fending off competition from Flipkart and Amazon.<\/li>\n<li data-start=\"2699\" data-end=\"2832\">Zomato\u2019s business model is more profitable than Swiggy\u2019s, making it a more resilient stock in the current market environment.<\/li>\n<\/ul>\n<p data-start=\"2834\" data-end=\"2988\">Given these factors, JM Financial maintains a bullish stance on Zomato, setting a target price of \u20b9280, representing 34.6% upside potential.<\/p>\n<p data-start=\"2990\" data-end=\"3132\">For Swiggy, the firm has a price target of \u20b9500, implying a 41.7% potential return, but acknowledges higher execution risks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Highlights: Zomato stock is trading 32.6% below its peak, currently at \u20b9205. Swiggy shares have dropped 47% from highs, trading at \u20b9356, below its IPO price of \u20b9390. Quick Commerce (QC) competition is heating up with new entrants like Flipkart Minutes and Amazon Now. JM Financial prefers Zomato over Swiggy, citing profitability and execution edge. 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