Delhivery share worth in focus as we speak: Extending their profitable streak for the sixth consecutive session on Wednesday, July 9, shares of Delhivery, the nation’s largest absolutely built-in logistics providers supplier, rose one other 3% to hit a nine-month excessive of ₹420.80 apiece.
The inventory has been on a robust upward trajectory since its April lows, pushed by optimistic enterprise developments and renewed investor sentiment. The newest increase got here after home brokerage Motilal Oswal initiated protection on the inventory with a ‘Purchase’ score and a goal worth of ₹480 per share, indicating an upside of practically 18% from Tuesday’s closing worth.
In its report, Motilal Oswal highlighted Delhivery’s strategic deal with acquisitions and built-in logistics options as key drivers of long-term progress. It expects Delhivery to be a key beneficiary of a rising e-commerce person base, enlargement into new service classes, and the scaling up of rising e-commerce fashions reminiscent of direct-to-consumer (D2C), social commerce, and omnichannel retail.
The brokerage highlights the corporate’s rising market share within the e-commerce categorical section, which doubled to round 25% in FY24 (and roughly 40% excluding captive quantity), up from about 12% in FY19.
It expects India’s e-commerce market to proceed increasing, particularly with rising digital adoption in Tier 2 and Tier 3 cities, which it believes will drive demand for categorical logistics providers, prompting some conventional transport companies to transition towards the categorical section.
Whereas categorical parcel supply is prone to stay Delhivery’s main income driver, Motilal anticipates regular traction within the PTL enterprise as nicely.
Trying forward, Motilal Oswal initiatives a 14% income CAGR for the corporate throughout FY25–28, supported by a number of components, together with wholesome progress within the PTL business (anticipated to develop at an 18% income and quantity CAGR), operational leverage from community enlargement and the mixing of the Delhivery–Spoton acquisition, and the scaling up of built-in options, with round 60% of present income coming from prospects utilizing two or extra providers.
Delhivery share worth development
The corporate’s shares started their restoration in March, which accelerated within the following months after being below extreme promoting strain for 5 consecutive months. After touching an all-time low of ₹236.53 apiece in March, the shares have recovered well, gaining 78% since then, marking the strongest turnaround for the inventory since its itemizing in Might 2022.
Though the inventory has recouped a big a part of its losses, it nonetheless trades 14% under its IPO worth of ₹487 and 22% decrease than its itemizing worth of ₹536.
From its all-time excessive of ₹708, recorded in July 2022, the inventory is presently down 41%.
Disclaimer: The views and suggestions given on this article are these of particular person analysts. These don’t symbolize the views of Mint. We advise traders to examine with licensed consultants earlier than taking any funding selections.
