Swiggy Faces Financial Challenges Amid Shift to Mildly Bullish Outlook

Swiggy, a midcap player in the E-Retail/E-Commerce sector, has recently undergone an adjustment in its evaluation score. This revision reflects a shift in the technical landscape, moving from a sideways trend to a mildly bullish outlook.
Key financial metrics indicate that Swiggy has faced challenges in its recent performance. The company reported an operating loss, with a poor EBIT to Interest ratio of -30.85, highlighting concerns regarding its ability to manage debt. The Debtors Turnover Ratio stands at a low 0.65 times, suggesting inefficiencies in collecting receivables. Additionally, the Profit Before Tax (PBT) for the latest quarter fell to Rs -1,151.00 crore, marking a decline of 12.3% compared to the previous four-quarter average. Similarly, the Profit After Tax (PAT) decreased to Rs -1,092.00 crore, down 17.9% from the prior average.

Despite these challenges, Swiggy has seen a notable increase in institutional holdings, now at 28.19%, which may provide some stability given the resources these investors possess to analyze company fundamentals.

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