Food for Thought: Zomato vs Swiggy—Which Stock Serves Up Better Value?

The recent market correction has left investors wondering which one of Zomato or Swiggy provides better value. Zomato, with a market capitalisation of about $8.5 billion, has delivered great improvements in profitability, registering its first operating profit in Q1 FY24 and raising its adjusted EBITDA to Rs 330 crore in Q2 FY25. Swiggy, worth $10.7 billion, hopes to break even by December 2025 through growing its dark stores and increasing marketing. Swiggy's stock has fallen 40% from its peak despite the company's endeavors, tracing the same historical trends for Zomato. Investors prefer Zomato because it is market leader and performing better financially, but Swiggy's growth potential will appeal to contrarian investors looking for opportunities.

 

Source: Indian Express, Equitymaster, and Business Today.