New Delhi, Feb. 3 -- Kotak Institutional Equities has begun coverage on Swiggy Ltd., assigning a 'Buy' rating with a price target of Rs.500. This target suggests a potential 15% upside from Swiggy's closing price on Saturday.

Swiggy's share price jumped over 5 per cent to close at Rs.456.20 on Monday's trading session. However, the stock has dropped 32 per cent from its post-listing peak of Rs.617.

In its report, the brokerage firm described Swiggy as a modern, technology-driven company providing hyperlocal services, including food delivery, quick commerce (QC), and out-of-home food consumption, all integrated within a single application.

Kotak anticipates the food delivery sector to expand at a consistent annual rate of 19%, while qui...