Axis Capital's optimistic assessment of the massive food delivery and quick-commerce company propelled Swiggy's share price to a new all-time high during the December 16 trading session.

Axis Capital views Swiggy as a strong investment opportunity, citing its growth in quick commerce and food delivery. The brokerage projects significant revenue growth, improved profitability, and strategic restructuring,

The stock today surged 14.99 per cent to hit an all-time high of Rs 612.30. It eventually settled 11.70 per cent at Rs 594.80. At this price, the recently-listed counter has rallied 52.51 per cent compared to its issue price of Rs 390.

This northward move in the share price came after the domestic brokerage Axis Capital initiated coverage on Swiggy, with a ‘Buy’ rating and a target price of INR 640 per share. The target indicates a potential upside of 20.18% from its previous close at INR 532.50 on December 13.

Swiggy share price jumped over 6% after the food and grocery delivery major reported its earnings for the second quarter of FY25, with a strong growth in revenue and narrowing of losses.

Swiggy made its stock market debut on November 13, listing at a 7.69% premium. The stock opened at Rs 420 per share on the NSE, compared to its IPO price of Rs 390.

Swiggy is making strides toward profitability, with Axis Capital forecasting an adjusted EBITDA of Rs 390 crore by FY27, a remarkable turnaround from a projected loss of Rs 1,840 crore in FY24. This improvement is attributed to: Cost optimisation across fixed and variable expenses.