Delhivery shares hit 52-week low despite 114% rise in Q3 profit, here's why

 Shares of logistics services firm Delhivery Ltd hit a fresh 52-week low in early deals on Monday after the firm reported its Q3 earnings. Delhivery stock slipped 5.29% to Rs 300 on Monday against the previous close of Rs 316.75 on BSE. Market cap of the firm fell to Rs 22,920 crore.  The stock touched a 52-week high of Rs 485 on February 27, 2024. 

A total of 1.74 lakh shares of the firm changed hands amounting to a turnover of Rs 5.38 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of Delhivery stands at 39.1, signaling it's trading neither in the oversold nor in the overbought zone. The stock has a beta of 1, indicating average volatility in a year. Shares of Delhivery are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day  and 200 day moving averages.   

Profit zoomed 114% to Rs 25 crore in Q3 against a profit of Rs 11.7 crore in the corresponding quarter of the previous fiscal. Revenue from operations climbed 8.4% to Rs 2378.3 crore in Q3FY25 against Rs 2194.4 crore revenue in Q3FY24.

At the operating level, EBITDA fell 6.2% to Rs 102.4 crore in the last quarter against Rs 109.2 cr in Q3 FY24. 

EBITDA margin came at 4.3% in Q3 compared to 5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Express Parcel revenue rose 3% to Rs 1,488 crore in Q3 FY25. Express Parcel shipments climbed 2% year-on-year to 206 million from 201 million in the same period last year.

Nuvama said Delhivery reported a weaker-than-expected Q3FY25 performance on the back of industry headwinds and softness in e-commerce volumes. It also trimmed its price target to Rs 380 against Rs 400.  

"We are cutting FY25E–27E EPS by up to 39% to reflect the weak Q3 performance. We reckon revenue/EBITDA CAGR of 14%/18% over FY24–27E, yielding a targte price of Rs 380 (earlier Rs 400); maintain ‘BUY’. We are cutting FY25E–27E EPS by up to 39% to reflect the weak Q3 performance. We reckon revenue/EBITDA CAGR of 14%/18% over FY24–27E, yielding a TP of Rs 380 (earlier Rs 400); maintain ‘BUY," said the brokerage. 

Delhivery is engaged in providing a full range of logistics services, including delivery of express parcel and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software.