New Delhi, November 5: Swiggy슬롯사이트s Rs 11,327 crore initial public offering (IPO) faces several risks and challenges that potential investors should consider, leading online brokerage Angel One has said, adding that the company슬롯사이트s high valuation, coupled with its ongoing losses, raises concerns about its long-term sustainability.

According to a blog by the online trading platform, the food delivery platform has 슬롯사이트consistently incurred net losses and negative cash flows since its establishment in 2014, raising concerns about its path to profitability슬롯사이트�. 슬롯사이트Revenue growth may also be at risk due to fierce competition and high operational costs, which could impact margins,슬롯사이트� said Angel One.슬롯 머신 사이트 추천Reliance Jio IPO Announcement Expected in 2025 as Mukesh Ambani's Telecom Company Reaches USD 100 Billion Valuation.

The Zomato rival is set to launch its highly-awaited IPO from November 6 to November 8. As the company prepares to go public, investors are keenly eyeing its financial performance, strengths and weaknesses to estimate its potential. According to the Angel One blog, in FY2024, Swiggy spent 16.46 per cent of its revenue on advertising, a substantial expense that may strain profitability if not managed efficiently.

Additionally, Swiggy슬롯사이트s reliance on a large workforce of 4,57,249 delivery partners brings risks related to retention; difficulties in maintaining this workforce could disrupt service efficiency, it noted.

슬롯사이트Strikes and disputes among delivery partners further pose a threat, potentially affecting continuity of service and increasing operational costs. Managing 557 active dark stores is another critical challenge, as inefficiencies could lead to higher operating expenses, impacting Swiggy슬롯사이트s overall financial performance,슬롯사이트� the note read.

These factors collectively underscore the operational and financial challenges Swiggy may face post-IPO, Angel One noted, advising that 슬롯사이트investors must carefully weigh the risks and rewards before investing슬롯사이트�. 슬롯사이트The company슬롯사이트s high valuation, coupled with its ongoing losses, raises concerns about its long-term sustainability. Ultimately, the success of Swiggy슬롯사이트s IPO will depend on various factors, including its ability to sustain growth, improve profitability, and navigate the competitive landscape,슬롯사이트� said the online brokerage.

Earlier, SAMCO Securities said in a note to investors that waiting until Swiggy demonstrates improved financial results and a clearer path to sustainable growth would be a more prudent investment approach.

슬롯사이트Given Swiggy슬롯사이트s current financial position, competitive pressures, associated risks, and valuation, its IPO appears overvalued. Therefore, We advise investors to AVOID this IPO until the company슬롯사이트s financial performance and growth outlook improve,슬롯사이트� said SAMCO Securities.

According to brokerage firms, Swiggy has faced consistent net losses since its establishment in 2014, primarily due to high operational costs. Over the past three fiscal years, the company has consistently reported losses on a consolidated basis. In FY22, the total income was Rs 6,119.78 crore, with a net loss of Rs 3,628.90 crore.슬롯 머신 사이트 추천Swiggy, Niva Bupa, Sagility India and ACME Solar Holdings To Launch IPO Next Week To Raise INR 18,534 Crore From Stock Market.

The following year, FY23, saw an increase in total income to Rs 8,714.45 crore, but the net loss also increased to Rs 4,179.31 crore. In FY24, the total income rose further to Rs 11,634.35 crore, while the net loss reduced to Rs 2,350.24 crore. In the first quarter of FY25, ending on June 30, 2024, the company recorded a total income of Rs 3,310.11 crore and a net loss of Rs 611.01 crore.

 

(The above story first appeared on LatestLY on Nov 05, 2024 12:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).