Motilal Oswal has began coverage of Swiggy with a 'neutral' rating, following the company's $1.3 billion public offering

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According to the report, Swiggy's unified app approach will provide them a competitive advantage in the food delivery and rapid commerce areas

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The firm has set a price objective of INR 475 for Swiggy, representing an almost 15% increase from the stock's close on Tuesday

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According to analysts at Motilal Oswal, Swiggy has lost its market leadership to competitors such as Zomato and Zepto

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The brokerage believes Swiggy has the potential to be one of the top three companies in the fast developing quick commerce market

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According to the brokerage, Swiggy is one of the few names that have defied the trend of super apps in India, which did not catch on as much as in China

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The brokerage anticipates margins in this segment to steadily increase from 6.4% to 9% by FY28

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Swiggy's rapid commerce arm Instamart has a contribution margin of 3.2%, which is lower than Blinkit's 4%

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Instamart outperforms Blinkit in terms of mid-mile and last-mile variable costs

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Swiggy made its stock market debut on November 13 at INR 420, with shares trading at a premium of 8% on the NSE

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