Shares of Swiggy extended their gains for the second straight session on Thursday to scale new highs. The foodtech stock has risen more than 25% in two sessions, while the market capitalisation crossed ₹1 lakh crore mark to ₹1.07 lakh crore.

Early today, Swiggy shares opened higher at ₹472, up 3.5% over the previous closing price of ₹455.95 on the BSE. Extending opening gains, the counter rose as much as 7.3% to hit a high of ₹489.25.

Swiggy’s fierce rival Zomato shares were also up nearly 2%, while the equity benchmarks Sensex and Nifty were trading flat with marginal gains.

On Wednesday, the shares of Swiggy listed at ₹420 on the NSE, a premium of 7.7% over the issue price of ₹390 apiece, which was much higher than Street expectations. The largecap stock ended the first day of trade at ₹455.95, up 16.9%, in an otherwise weak broader market.

Post listing, JM Financial initiated coverage on the stock with a ‘Buy’ rating and a target price to ₹470, which has already been breached on the second day of trading. “We use the multiples-based SOTP method to value Swiggy in which each of its reported segments is valued basis either EBITDA, GOV or Sale multiples. These multiples are 10-50% lower than those used to value Zomato’s segments due to differences in scale and profitability. Despite this discount, our Mar’26 TP for Swiggy works out to INR 470, indicating 21% upside.”

On Swiggy versus Zomato, the brokerage says that on an absolute basis Swiggy offers decent upside, but it would prefer Zomato if asked to pick only one due to its superior execution in the past and market leadership across key segments. “We, however, suggest that investors play both (preferably with higher weightage for Zomato), as in any case both are likely to be amongst the fastest growing consumption names and could, therefore, outperform the broader market returns.”

Bajaj broking in a note says there's optimism about Swiggy’s potential to capture further market share in India’s Android evolving food delivery and quick commerce segments, the road to profitability may be bumpy. “Swiggy has shown impressive growth potential, yet persistent losses over recent fiscal years signal challenges ahead. Investors may need to brace for a dynamic journey as the company seeks to balance expansion with sustainable financial performance."

Swiggy raised ₹11,300 crore through initial public offering (IPO), at a price band of ₹371-390 per share, with the issue subscribing 3.59 times. The public issue was subscribed 1.14 times in the retail category, 6.02 times in QIB, and 0.41 times in the non-institutional investor (NII) segment. The portion reserved for employees was booked 1.65 times.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)

Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.