Check Before You Invest : Swiggy Ltd

BSE: 544285 NSE: SWIGGY ISIN: INE00H001014

| Sector: Retail | Industry: e-Commerce

Snapshot

Q.1 Which industry/sub-sector does Swiggy Ltd belong to?

Swiggy Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.

Q.2 Is Swiggy Ltd a good quality company?

Swiggy Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Swiggy Ltd undervalued or overvalued?

Swiggy Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Swiggy Ltd a good buy now?

Swiggy Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Swiggy Ltd?

Swiggy Ltd revenue growth is 38% for FY-2025, which is above its 5-year CAGR of 21.76%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Swiggy Ltd?

Swiggy Ltd Return on capital employed is -24.02% for FY-2025, which is above its 5-year historical median of -33.29%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Swiggy Ltd?

Swiggy Ltd Return on Asset is -19.9%, which is above its 5-year historical median of -29.26%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Swiggy Ltd?

Swiggy Ltd Return on equity is -255.36% for FY-2025, which is below its 5-year historical median of -73.32%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Swiggy Ltd?

Swiggy Ltd Cash conversion cycle is -19 days, below its 5-year historical median of -12 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.71	0.52
ROE	-255.36	-73.32
ROCE	-24.02	-33.29
Cash Conversion Cycle	-19 days	-12 days

Q.6 Gross Profit margin of Swiggy Ltd?

Swiggy Ltd Gross profit margin which is the profit after deduction of direct costs, is -26.6% for FY-2025, which is above its 5-year median of -47.9%, indicating increasing margins.

Q.7 Operating Profit Margin of Swiggy Ltd?

Swiggy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -34.26% for FY-2025, which is above its 5-year median of -50.43% indicating increasing margins.

Q.8 Net Profit Margin of Swiggy Ltd?

Swiggy Ltd Net Profit Margin is -28.89% for FY-2025, is above with its 5-year median of -65.42%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-26.6	-47.9
Operating Profit Margin	-34.26	-50.43
Net Profit Margin	-28.89	-65.42

Q.9 Debt to Equity ratio of Swiggy Ltd?

Swiggy Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.22, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Swiggy Ltd?

Swiggy Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Swiggy Ltd?

Promoters hold 0.00% of the Swiggy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Swiggy Ltd vs industry peers?

Swiggy Ltd revenue CAGR is 21.76%, compared to the industry median CAGR of 35.08%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	38	35.1
Gross Profit Growth	0	51.1
Operating Profit Growth	0	40.8
Net Profit Growth	0	-

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.71	1.86
ROE	-255.36	-157.26
ROCE	-24.02	-33.29
Cash Conversion Cycle (days)	-19.43	-12

Valuation & price assessment

Q.1 Stock return of Swiggy Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -14.61% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-14.6%

Q.3 Valuation ratios of Swiggy Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-46.99	31.95
Price to Book	3.66	5.46	5.00
Price to Sales	6.86	10.81	7.87
EV to EBITDA	-21.29	-35.62	18.73

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