A joint report by Bain & Company and Swiggy predicts that India’s food delivery market will grow at a CAGR of 18 percent, surpassing Rs 2 lakh crore by 2030. The surge in user-friendly apps and technology-driven driver networks has significantly increased ready-to-eat food orders and deliveries, with shifting consumer expectations further fueling this growth over the past decade.

The Brokerage Firm  is bullish on these Online Food Aggregators Stocks with an upside potential of over 100 percent to keep in your radar:

1. Zomato Limited

The shares of Zomato Ltd, with a total market capitalization of Rs 1.99 Lakh Crores on Tuesday, were trading at Rs 206.5 per share which was 2.3 percent down from the previous closing price of Rs 211.3. The shares are trading at a discount of 32 percent from its 52-week high of Rs 304.7 apiece. The shares of Zomato generated a return of 148 percent in the last three years and a 76 percent return in the last five years.

ICICI Securities has a “Buy” rating on the stock of Zomato Ltd. It sets a price target of Rs 310 per share on Zomato, which implies a potential upside of 47 percent from Monday’s closing price of Rs 211.3.  

Zomato Ltd operates a B2C technology platform connecting customers, restaurant partners, and delivery partners across multiple services like food delivery and dining-out options. Its key business verticals include Food Delivery, Hyperpure, Quick Commerce, & Going Out. 

2. Swiggy Limited

The shares of Swiggy Ltd, with a total market capitalization of Rs 79,664 Crores on Tuesday, were trading at Rs 349 per share which was 3 percent down from the previous closing price of Rs 359.6. The shares are trading at a discount of 41.7 percent from its 52-week high of Rs 617 apiece. 

ICICI Securities has a “Buy” rating on the stock of Swiggy Ltd. It sets a price target of Rs 740 per share on Swiggy, which implies a potential upside of 105.8 percent from Monday’s closing price of Rs 359.6.

Swiggy Ltd operates across over 600 cities, offering services like food delivery, quick commerce through Instamart, and package delivery via Swiggy Genie. Its key business vertices include Food Delivery, Out of Home Consumption, Quick Commerce, Supply Chain & Distribution & Platform Innovations. 

Also read: Stock in focus after bagging an order worth ₹ 75.43 Cr for Water Pumping Systems

Brokerage Rationale 

The Brokerage firm ICICI Securities stated that the concerns regarding increasing cash burn in the quick commerce segment are over exaggerated by the market, which led to steep corrections in both the stocks. The Brokerage added that this anomaly will not last long, especially given a robust outlook for discretionary consumption from May 2025. 

According to the brokerage, the contribution from the quick commerce unit of Zomato, Blinkit, is not reflected in the company’s valuation, while Swiggy is trading at an “about 30% discount to par value” for its food delivery business. 

The Brokerage firm also noted that the platforms’ shift in focus towards boosting order values has helped in easing the aggressive discounting in the quick commerce space. ICICI Securities also anticipates the recent tax cuts to boost middle-class consumption, helping both Swiggy and Zomato. 

“We think food delivery is being ignored by investors in the panic over quick commerce. Food delivery has continued to scale profitably over the last 2 years, and while there was some slowdown in growth in Q3FY25, we do not think there is reason to be worried about structural growth drivers in the space,” said ICICI Securities.

The Brokerage believes that the valuation for quick commerce businesses is compelling for investors with an investment horizon of >1 year, despite the lack of visibility on contribution margin improvement in the near term. 

Written By Adhvaitha Nayani

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A joint report by Bain & Company and Swiggy predicts that India’s food delivery market will grow at a CAGR of 18 percent, surpassing Rs 2 lakh crore by 2030. The surge in user-friendly apps and technology-driven driver networks has significantly increased ready-to-eat food orders and deliveries, with shifting consumer expectations further fueling this growth
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