Zomato, Swiggy Shares Fall After Macquarie Asks For Discretion On Food Delivery Stocks

Zomato and Swiggy, along with Zepto, are currently part of one of the most ever-evolving and intensely competitive markets. The food and quick commerce market has boomed in the recent past, thanks to these companies.

Macquire On Zomato and Swiggy

However, investors' confidence in the platform may not at its peak right, as the company shares dipped in Tuesday's trade. This is because both Swiggy and Zomato were trading with cuts (Zepto is not a listed company yet).

This is no coincidence, as the Australian multinational rating and finance agency Macquarie cautioned investors on food delivery and quick comerice companies, as per a CNBC TV18 report.

Interestingly, apart from issuing restraints on delivery companies, Macquarie issued a positive rating for fast food franchises like Westlife, which operates McDonalds in some parts of India, along with Devyani, which runs other major joints like KFC and Pizza Hut in India.

This appears to be drawing a sharp divide in the preferences of the rating agency, cutting between food delivery and food franchise companies.

Zomato Ltd Shares Shrink

When we look at the performance of Zomato and Swiggy today, both companies are trading with a decline of over 2 per cent.

The Deepinder Goyal-owned Zomato, which also has Blinkit and Hyperpure under its belt, was the biggest loser among the two. Zomato shares declined by 5.29 per cent or Rs 11.79 per share. This took the overall value of the Gurgoan-based company stocks to Rs 211.01 per piece.

Swiggy Ltd Shares Dip

The shares of the Bengaluru-based Swiggy were also in decline. The company also runs its quick-service system, Instamart, along with Swiggy Genie.

The shares of the food delivery giant declined by a total of 1.79 per cent or Rs 6.30 at the time of writing. This took the overall value of the company shares to Rs 345.15 per share.