KOTAK INSTITUTIONAL EQUITIES ON SWIGGY ; BUY | TP ₹310

• Recent stock correction seen as overdone despite weak Instamart execution and continued losses. • Key concerns: Instamart losses, Blinkit’s aggressive dark-store expansion and incremental Toing cash burn. • Kotak believes the market is assigning little value to Instamart at current levels. • Toing losses expected to be transitory; higher order density and AOV could support eventual breakeven. • Market appears to be pricing in ~₹120 Cr quarterly Toing cash burn continuing into FY28. • Kotak sees current valuation assumptions as excessively bearish. • Retains BUY with unchanged FV of ₹310, supported by a higher valuation for the food-delivery business.

SWIGGY LIMITED

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