Shares of logistics services firm Delhivery hit a fresh record low in a weak market today. The stock of Delhivery fell 2.74 per cent intraday to Rs 299.55 against the previous close of Rs 308 on BSE. Market cap of Delhivery fell to Rs 22,104 crore. Total 0.50 lakh shares of the firm changed hands amounting to a turnover of Rs 1.49 crore on BSE. The stock has lost 8.42% in 2023. In terms of technicals, the relative strength index (RSI) of the stock stands at 34.3, signaling the stock is neither oversold nor overbought. Delhivery stock is trading lower than its 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
At 2:56 pm, the stock was trading 1.69% lower at Rs 302.80 on BSE. The stock hit a record high of Rs 708.45 on July 21, 2022 on BSE.
Kotak Institutional Equities has a buy rating of Rs 395 for Delhivery stock.
Australian brokerage Macquarie has initiated coverage on the logistics services provider with a buy call. The brokerage has assigned an outperform rating to the firm with a target price of Rs 440, which amounts to an upside of 42% compared to the previous close on BSE. It sees a clear path to 100% returns in 3 years for the stock.
The brokerage has forecasted four times volume growth by FY30 with a sustainable cost leadership position, positive unit economics and no external funding needs.
"Over the next few quarters, we see a low-growth operating environment due to tighter funding conditions for e-commerce platforms," the brokerage said in a note. If the low-growth operating period becomes the new normal, Macquarie's bear case valuation would be Rs 215 with a 30% downside from the current price, it said.
Abhijeet from Tips2trade said, "Delhivery stock price continues its bearish trend as it has been unable to sustain or close above it's resistance of 339. A daily close below 297 could trigger a further fall till 230 in the near term."
In the second quarter of this fiscal, net loss narrowed to Rs 254 crore against the loss of Rs 635 crore logged in the year-ago period. The loss also fell sequentially as it stood at Rs 399 crore in the June 2022 quarter. Delhivery reported a 22 percent higher revenue in Q2FY23 at Rs 1,796 crore against Rs 1,497.7 crore revenue reported in the corresponding quarter of the last fiscal. Revenue rose marginally quarter-on-quarter as well as the same stood at Rs 1,745.7 crore in Q1FY23.
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.
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