Is Swiggy: Flop or Multi-bagger Stock? (How to invest in Swiggy) | Akshat Shrivastava

Summary

In this video, Aachet Srivastav discusses why Swiggy is a promising investment, especially for conservative investors. He compares Swiggy's $11 billion valuation to its competitor Zomato's $23 billion, suggesting a potential 40-45% gain if Swiggy's IPO goes well. Srivastav explains the concept of unlisted markets, the risks involved, and the benefits of investing in Swiggy's CCPS over common equity. He guides viewers on how to invest in Swiggy through InCredit Money and emphasizes the importance of considering the investment as a high-risk, high-reward opportunity.

Takeaways

• 📈 Swiggy is considered a good investment due to its current valuation of around $11 billion, which is significantly lower than its estimated fair value of $14 to $15 billion.
• 🔄 Aachet Srivastav, the speaker, has rotated part of his investment from Zomato, which he had invested in previously and made a profit from, into Swiggy.
• 🆚 Swiggy's main competitor is Zomato, which has a higher valuation of about $23 billion, suggesting Swiggy is undervalued in comparison.
• 💼 Swiggy is in the 'unlisted space', meaning it's preparing for an IPO and offers investors a chance to buy in before it becomes publicly traded.
• 🚀 The potential gain for investing in Swiggy is estimated to be around 40-45% if the company goes public at its fair value.
• 📉 The risks of investing in unlisted companies include the uncertainty of the IPO, valuation risks, and market risks post-IPO.
• 🛒 The quick commerce sector, which Swiggy operates in, is expected to grow significantly, providing a strong business case for investment.
• 💼 Investing in CCPS (Convertible Cumulative Preference Shares) of Swiggy at a lower valuation than common equity could provide a premium during the IPO.
• 💻 The InCredit Money platform can be used to invest in Swiggy's CCPS, with a detailed process explained in the video.
• ⏱️ There is a six-month lock-in period post-IPO for unlisted stocks as per SEBI regulations, which is a consideration for investors.

Q & A

What is the main topic of the video?

The main topic of the video is to discuss why Swiggy is considered a good investment opportunity, particularly in the unlisted market, and to provide insights on how to invest in it.

Who is Aachet Srivastav and what does he do?

Aachet Srivastav is the speaker in the video and he runs a hedge fund in Dubai. He shares knowledge about investing with his retail audience through his YouTube channel.

What is Swiggy's current valuation in the unlisted market?

Swiggy's current valuation in the unlisted market is around $11 billion.

How does Swiggy's valuation compare to its competitor Zomato?

Zomato's valuation is around $23 billion, and Swiggy's fair valuation is estimated to be around 60 to 70% of Zomato's, which would be approximately $14 to $15 billion.

What is the potential gain if Swiggy lists at its estimated fair value?

If Swiggy lists at its estimated fair value and you invest at the current unlisted valuation of $11 billion, the potential gain is roughly 40 to 45%.

What does the term 'unlisted space' refer to in the context of the video?

The 'unlisted space' refers to the stage where a company is fairly large and mature but has not yet gone public, and is preparing for an Initial Public Offering (IPO).

What are the three types of risks associated with investing in unlisted companies according to the video?

The three types of risks are: the risk of the company not going public (IPO risk), valuation risk, and market risk.

Why might Swiggy's IPO be considered a low risk according to the video?

Swiggy's IPO is considered low risk because it is almost certain that they will go public due to their market premium and the need to meet regulatory requirements.

What is the significance of CCPS (Compulsorily Convertible Preference Shares) in the context of investing in Swiggy?

CCPS are a type of preferred share that offer a valuation advantage. They are available at a lower price than common equity and will automatically convert into common equity at the time of the IPO.

How can one invest in Swiggy's CCPS as mentioned in the video?

One can invest in Swiggy's CCPS through the InCredit Money platform, where after completing KYC and linking a DEMAT account, one can place bids on the unlisted shares.

What advice does Aachet Srivastav give to potential investors considering investing in Swiggy?

Aachet advises potential investors to treat the investment as a high-risk, high-reward opportunity, similar to investing in small-cap stocks. He suggests studying the portfolio, analyzing the risk-reward, and ensuring the investment fits the investor's portfolio strategy.