The listing of Swiggy Ltd surprised many stock market players who were hoping for a tepid debut even as domestic benchmarks continued to crack. The shares of the fast food and commerce platform were listed at a premium of 7.69 percent at Rs 420 over their issue price of Rs 390. The stock ultimately soared 15.13 percent to reach a daily value of Rs 449.

Analysts remained largely “positive” from a long-term perspective. The valuation of Swiggy would offer more comfort and room for upside compared to Zomato at current levels, one analyst said. On the other hand, one of them advised to wait for new inflows and “buy close to the issue price”. That being said, Swiggy’s post-listing performance will be closely monitored, particularly its potential to close the valuation gap with Zomato and improve operational efficiencies.

“On the valuation front, Swiggy would offer more comfort and upside headroom compared to Zomato at the current market price. And we can see target levels of Rs 550 to 600,” Aditya Agarwala, co-founder and responsible for research. & Investments at Invest4edu, said Business today.

“Despite the gloomy market mood and the slow response from all investors, the listing of Swiggy surprised market participants. A positive listing and maintaining the price above its issue price of Rs 390 should be considered strong demand for the company This shows that investors are positive on the space and Fear of missing out is a factor that is making investors not miss the growth story of the sector. , similar to the post-listing trend of Zomato,” said Prashanth Tapse, senior vice president (research), Mehta Equities.

“For allocated investors, “Hold for the long term” despite knowing the short-term volatility and competitive pressures in the sector. For non-allocators, we advise to wait and watch for the price to stabilize and come back to buy close to the issue price if we get it due to selling pressure in the market,” Tapse added.

“Swiggy debuted at Rs 420, marking a listing gain of 7.6 percent. Current market conditions have kept many investors away, especially as many high-quality companies remain 15 at 20 percent below their all-time highs However, for those with a higher risk appetite, Swiggy could be an opportunity to capitalize on the valuation gap between Zomato and Swiggy, with potential gains depending on. Swiggy’s ability to improve its operational efficiencies over time,” said Gaurav Garg, research analyst at Lemonn Markets Desk.

Separately, JM Financial has issued a ‘Buy’ call on Swiggy with a target of Rs 470. “While on an absolute basis, Swiggy offers decent upside potential, we would prefer Zomato if asked to pick just one due to its superior execution in the past. and market leadership in key segments,” the brokerage said.

Meanwhile, Indian equity benchmarks took a big beating today, extending their fall for the fifth straight session.