Swiggy shares fell by 38 percent this year due to rising losses and slow growth

Mumbai, April 15 (IANS). Swiggi’s share price of food delivery and fast traders has dropped by 38 percent so far this year. The reason for the poor performance of the stock is to increase the loss and increase the pressure on the margin due to over competition. Swigy’s stock closed at Rs 334.5 on Rs 334.5 on Tuesday, compared to the Nifty’s profit of more than two percent. This shows that the sentiment in the market is not positive about the stock. Swigy’s share has fallen by 26.64 percent over the past six months. At the same time, the stock has weakened 6.05 percent over the past one month. Although the last five trade sessions had a 4.29 percent increase in Swiggi’s stock, but a widespread trend remains negative. Bank of America (Bofa) put down Swiggi and assessed the ‘underperformance’. The target price was also reduced from Rs 420 to Rs 325. The brokerage firm described the slow growth in the food delivery segment and the increasing competition in the fast trading sector. Bofa said new businesses that give big discounts are likely to affect Swiggy’s profits in the near future due to increasing competition and over -marketing. The brokerage firm said this increased competition could increase marketing costs and provide more discount on the platform and be a reduction in the delivery fee for consumers. Analysts believe the biggest concern is that the profit from food delivery, which was once a stable source, is now used to cover the deficit in fast trade. Analysts said it is still difficult for fast dealer companies to reach Brebren. In the third quarter of FY 2024-25, the company recorded a loss of Rs 799 crore. In this, the deficit increased by 39 percent compared to the same period last year. -Ians abs/aques share these story tags