Delhivery shares slip below Rs 400 level amid huge turnover; SoftBank likely seller

Shares of Delhivery Ltd fell nearly 4 per cent in Friday's trade amid huge turnover on the counter. Data showed the counter witnessed a Rs 808.32 crore turnover on NSE within minutes into trading. A media report suggested that a total 1.8 crore shares, accounting to 2.51 per cent equity, worth Rs 747 crore change hands on the counter at Rs 403 per share.

It was earlier reported that SoftBank could offload part stake in the logistics service provider for around $150 million on Friday. The report by Moneycontrol, quoting multiple industry sources suggested, that SoftBank was seeking selling of 4 per cent stake in Delhivery via the block deal route. Kotak Mahindra Capital was believed to be the advisor to the proposed transaction. It is not known whether SoftBank was among sellers amid huge turnover on the counter.

Delhivery slipped below Rs 400-mark at Rs 398.50, down 3.63 per cent, before recovering some group. The scrip later traded 2.78 per cent lower at Rs 402.35.

In the September quarter, Delhivery regained lost wallet share and also reported yield improvement in the PTL business. Analysts said the quarterly results underpinned the management’s focus on improving profitability and gaining market share, Emkay Global said in a note.

This brokerage suggested a 'BUY' recommendation on the stock with a target of Rs 490. In a note, it said the network expansion investment for FY24 has been completed and that a pickup in demand is imminent in Q3.

"H2 should see decent operating leverage for the company to turn EBITDA positive. Strong cash position lends support to future expansion plans while keeping any aggressive competition at bay," it said.

CLSA has reduced its rating on the stock to Rs 493 from Rs 550, as the foreign brokerage cut its sales estimates by 3.2 per cent for FY24-.

"We believe consensus is underestimating the operating leverage in the business as revenue scales up, and we are significantly higher on our Ebitda margin assumptions for FY26 than consensus," it said.

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