Swiggy (SWIGGY)
Fast GrowerFairStock Score: 28/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹276.3 |
| Market Cap | ₹72,390.65 Cr |
| P/E Ratio | 0 |
| ROCE | -29.22% |
| ROE | -43.4% |
| Dividend Yield | 0% |
| Profit Growth | 135.32% |
| Debt/Equity | 0.14 |
| Sales Growth | 0.18% |
| Free Cash Flow | ₹-3,541 Cr |
| Promoter Holding | 0% |
| 52-Week Range | ₹235.75 — ₹474 |
| Sector | Retailing |
| Book Value | ₹70.28 |
Strengths
- Strong revenue momentum: sales growth of 52.09% and 5-year revenue CAGR of 42.99%.
- Large quarterly revenue scale of ₹6,148 Cr indicates meaningful consumer adoption.
- Low debt/equity of 0.25 provides some financial cushion while the company burns cash.
- Altman Z-Score of 4.57 suggests low near-term insolvency risk despite current losses.
Concerns
- Heavy losses: latest quarter net profit is -₹1,065 Cr and free cash flow is -₹3,541 Cr.
- Negative returns: ROE is -43.40% and ROCE is -29.22%, destroying shareholder capital.
- P/B of 7.92 is expensive for a loss-making company with no P/E and no dividend.
- Piotroski F-Score of 3/9 and zero promoter holding raise governance and fundamentals red flags.
AI Analysis
At ₹293.05, Swiggy's market cap is ₹83,292 Cr, yet the company has no earnings. I can't compute a P/E, and that is a red flag. In Graham's world, price is what you pay, value is what you get. Here I'd be paying about 7.9 times book for a business earning -43.40% on equity and -29.22% on capital employed. The latest quarter loses ₹1,065 Cr on ₹6,148 Cr sales; free cash flow is -₹3,541 Cr. That is serious cash burn. With a Piotroski F-Score of 3/9, the underlying financial health is weak. Altman Z of 4.57 says insolvency risk is low today, but much of that is the comfort of a low 0.25 debt-to-equity and large revenue scale, not a machine that produces profits. Revenue growth is astounding: 52.09% overall and 42.99% CAGR over five years. That is a fast grower, but a fast grower that doesn't earn money is more a promise than a business. In Buffett's terms, competitive advantage is only useful if it converts to profits. With promoter holding at zero and no dividend, I am not being paid to wait. The 52-week range shows the market itself is confused, from ₹235.75 to ₹474.00, now near the lower end. I do not invest in hopes; I invest in certainties. Swiggy could be a wonderful enterprise eventually, but at ₹83,292 Cr, valuation already assumes huge success. Mystery is not opportunity; in investing, it's usually a risk. My circle of competence says wait until numbers prove profitability, or value appears far cheaper.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer