Investment made by Reha Junjhunwala dropped by 50%: explanation of the reasons

Due to unsatisfactory quarterly results, analytical firms lowered their target prices for Swiggy shares following the September 2026 report. Consequently, the company's stock sharply declined, losing over 17 percent during Friday's trading session.

This marked the most significant intraday drop since its listing. The shares reached a new 52-week low, leading to a decrease in market capitalization by 10,000 crore rupees, thereby reducing investor assets by that amount.

On Friday, Swiggy Limited shares fell by 17.22 percent, reaching the mark of 174.90 rupees, which brought the market capitalization below 48,300 crore rupees. It is worth noting that compared to the 52-week high in October 2025, when the price was 434.50 rupees, there was a drop of 60 percent. Furthermore, from a record level of around 595–600 rupees in December 2024, a decline of more than 70 percent was observed.

Swiggy shares lost more than 55 percent of their initial offering price (IPO), which was 393 rupees. The company went public in November 2024, raising a total of 11,327 rupees from investors at an evaluation of 1.02 lakh crore rupees. As a result, the company led to an approximate loss of 55,000 crore rupees in investor assets.

The main problem for Swiggy is the continuous growth of net losses, especially in the express delivery segment. Market participants are questioning its performance standards, noting that it appears less competitive compared to Eternal. The profitability of the Instamart business is causing the greatest concern.

JM Financial Limited attributed three-quarters of the losses to delivery (toing), which resulted in a decline in joint venture profits. Due to this, the target price was lowered to 200 rupees, as the company maintained an unchanged FD multiplier ratio of 35, while Instamart or Cash continued to receive a zero price. The company stated that it believes in the necessity of discontinuing delivery.

According to Nirmal Bang Institutional Equities, the food delivery segment shows record profits, and Instamart is gaining momentum again. However, the second quarter report for the fiscal year 2027 confirms that Swiggy has firmly entered the development phase of Instamart, where the contribution of express delivery and consolidated losses are planned to gradually decrease in the near future. A reduction in EBITDA was also noted. Analysts at the brokerage firm assigned a 'BUY' rating but lowered the target price to 340 rupees.

The Indian stock market is currently under significant pressure, with continuous declines observed in the Sensex and Nifty indices. Small and mid-cap stocks have been particularly affected, leading to substantial daily losses for investors.

On Thursday, the market capitalization of BSE fell from 461.78 lakh crore to 458.35 lakh crore, losing 3.43 lakh crore. On the same day, the Sensex dropped by 460.30 points or 0.62%, reaching 73,249.39, while the Nifty decreased by 123.70 points or 0.54%, settling at 22,687.65.

Furthermore, the BSE Smallcap Select index fell by 80.61 points or 0.94%, dropping to 8,533.71, and the BSE Midcap Select index slid by 126.26 points or 0.74%, reaching 16,979.59.

Among the 30 stocks in the BSE Sensex, 11 showed growth, while the remaining 19 experienced a decline. Reliance Industries shares lost the most, falling by 2.59% to 1176 rupees. They were followed by Eternal, HDFC Bank, and Powergrid shares, which dropped by more than 2%.

The primary reason cited for the turmoil in the stock market is the rise in crude oil prices. On Thursday, the price of crude oil rose by 3%, exceeding the $112 per barrel mark. The increase in oil prices has intensified inflation concerns, which has caused the sharp fall in the stock market.

Other factors also contribute to the decline in the stock market. (Note: Always consult your financial advisor before investing in any stocks.)

Despite the continuous rise in crude oil prices, the Indian stock market is currently under pressure and showing a decline. A significant drop is observed among many stocks. On Thursday, shares of a cable company fell by more than 10%.

On Thursday, shares of KEI Industries, a manufacturer of cables and wires, dropped to around 3728.70, approaching its fifty-two-week low. Following this, there was a slight recovery, and the stock is currently trading with a decline of more than 7%.

The stock decline occurred after the publication of the company's quarterly financial results. For the quarter ending in September 2026, the company reported an operating profit below expectations. Meanwhile, the company's revenue increased by 38.5% year-on-year, reaching 3776 crore rupees. EBITDA grew by 39.8%, amounting to 377 crore rupees, and net profit after tax increased by 29% to 262 crore rupees.

Thanks to improved operating profit potential and a more favorable product mix, the EBITDA margin improved by 9 basis points year-on-year, reaching 10%. The company stated that the revenue growth was driven by high market demand. Revenue from only sectors amounted to 3669 crore rupees, which is 40% higher year-on-year, while revenue from stainless steel and EPC was 63 and 104 crore rupees, respectively. Internal revenue of W&C grew by 46%, and exports grew by 7% year-on-year. By the end of the second quarter, the company's order book stood at 5185 crore rupees.

Motilal Oswal Financial Services noted that KEI's EBITDA meets the forecasts for the second quarter. This figure was supported by strong revenue growth in the C&W and EPC segments. However, the EPC business incurred losses this quarter. In its update on the second-quarter results, the brokerage firm stated its positive view on the C&W sector due to strong long-term growth prospects. The brokerage firm assigned a 'Buy' rating to this stock.