Delhivery shares reclaim Rs 400 mark after a month; what’s next?

Shares of logistics services firm Delhivery Ltd reclaimed the Rs 400 mark after a month today. The Delhivery stock crossed the Rs 400 level on December 5, 2023 when it hit an intraday high of Rs 402.55.  Delhivery shares touched an intraday high of Rs 404.15, rising 4.02% today against the previous close of Rs 388.50 on BSE. 

They touched a 52-week high of Rs 452 on September 5, 2023 and fell to a 52 week low of Rs 291 on January 27, 2023. Market cap of Delhivery rose to Rs 29,262 crore. It opened on a flat note at Rs 388.70. A total of 0.79 lakh shares of the firm changed hands amounting to a turnover of Rs 3.15 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of Delhivery stands at 52.6, signaling it's trading neither in the overbought nor in the oversold zone. The stock has a beta of 0.3, indicating very low volatility in a year. Shares of Delhivery are trading higher than the 5 day, 10 day, 20 day, 50 day, 200 day but lower than the 100 day and 150 day moving averages.    

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has recently bottomed out near Rs 355 zone and indicated a pullback with improvement in the bias moving past the important moving averages of 50EMA and 200 period MA. Currently with a positive candle formation on the daily chart has strengthened the probability for further rise in the coming days. The RSI is well placed indicating a decent trend reversal from the oversold zone and has much upside potential to carry on the positive move. With the chart looking good, we suggest a buy keeping a strict stop loss of Rs 380 for an upside target of Rs 445 levels."

ICICI Securities has assigned a target price of Rs 500 to the stock.  

Also read: Hot stocks on January 3: YES Bank, Adani Enterprises, IRCON, Canara Bank and more

“We value Delhivery using time-discounted forward EV/EBITDA multiples. We discount EV, calculated at 20x FY26E EV/EBITDA (at 15% discount rate), to arrive at our price target of Rs 500. Key risks: 1) Pricing pressure in the express parcel or PTL business. 2) Global headwinds worsening medium-term growth visibility,” said the brokerage.  

Abhijeet from Tips2Trades said, "Delhivery looks bullish on the daily charts and a close above the resistance of Rs 407 could lead to a target of Rs 440 in the near term. Support will be at Rs 381."  

Gaurav Bissa, VP at InCred Equities said, "Delhivery was seen in a strong downtrend since getting listed on the Indian bourses. The stock was consistently forming lower highs and lower lows which kept the stock under constant pressure. However, the stock confirmed trend reversal at Rs 360 levels which pushed it toward Rs 400 mark. The stock continues to remain in uptrend and has recently bounced from 21ema support on the weekly charts. RSI has also bounced from support area of 53 on the weekly charts implying the downside is likely to be restricted and stock is expected to continue its uptrend. Investors who hold the stock are advised to ride the trend, which can take it towards Rs 510 levels with a stoploss placed at Rs 385 levels."  

Global brokerage Jefferies has assigned a buy call on the Delhivery stock with a target price of Rs 570.   

"2HFY23 results surprised positively with lower losses. We believe current price factors in less than 10% express parcel growth in the next 3-5 years vs 30% plus levels seen in the past. Delivery on the toned-down expectations should be enough for the stock to move materially higher in 2023," it said.   

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. Delhivery is the largest and fastest-growing fully integrated logistics services player in India by revenue as of FY21.   

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.         

Also read: Gensol bags Rs 138 crore order from Sarda Energy & Metal; stock trades flat

 

Also read: Paytm vs SBI Card shares: Bernstein picks this payments biz stock, suggests 47% upside