Mutual Funds Dump Zomato, Place Rs 3,100 Cr Bet on Swiggy

In July, Mutual Funds made a surprising move in the food delivery space, selling shares of Zomato’s parent company, while buying into its challenger, Swiggy.

Mutual funds offloaded around Rs 1,700 crore worth of Eternal shares even though the stock surged nearly 17% in July and is up 14% this year. At the same time, they pumped Rs 1,400 crore into Swiggy, whose stock has fallen 26% year-to-date.

This looks like a classic case of “sell the winners, buy the laggards.” Fund managers seem to believe Zomato’s strong rally may have peaked, while Swiggy’s slump offers a “buying the dip” opportunity.

Who sold Zomato?

Here is the list who sold Zomato:

ICICI Prudential MF sold shares worth Rs 810 crore.
Mirae Asset exited Rs 820 crore.
Kotak and SBI MF also sold big chunks.
On the other hand, Axis MF, Motilal Oswal and HDFC MF bought some Zomato shares, which shows that not everyone is bearish.

Also Read: Eternal Share Price Jump 10%: Eternal Zomato Q1 Results 2025

Who bought Swiggy?

Mirae Asset, HDFC, SBI MF, Bandhan and Invesco led the Swiggy buying spree.

Why the Shift?

Zomato (Eternal) has been on a dream run, rallying for two straight months (21% in June, 17% in July). Fund managers likely booked profits after the rally.
Swiggy is facing challenges with a major stock decline, but many institutional investors are confident, believing the most challenging phase may be over, especially with expected profitability improvements.

Don't Miss: Swiggy Share Price Gain 7% on Eternal Q1 Results: What's New

What Experts Say

Goldman Sachs is still bullish on Zomato, raising its target price to Rs 340 (25% upside).
Jefferies also upgraded Zomato, saying earlier fears about competition were “unfounded.”
For Swiggy, Jefferies believes Q1 was the bottom for profitability and expects improvement ahead.
HSBC values Swiggy at Rs 11.4 billion (Rs 430 per share), while Morgan Stanley has cut its loss projections for the company.

What Should Investors do?

Experts suggest Zomato still has strong growth potential thanks to quick commerce, but Swiggy could be a riskier bet with potential upside if its turnaround works out.

In short, Mutual funds are playing contrarian, cashing out of Zomato’s highs and betting on a Swiggy recovery.