Delhivery shares end 5% higher in today's session; here’s why

Shares of logistics major Delhivery witnessed strong buying in Tuesday's trade, settling nearly 5 per cent higher following an announcement regarding the company's global expansion strategy. 

The Delhivery stock closed 4.64 per cent higher at Rs 415.20 on the BSE, over its previous close of Rs 396.80 apiece. According to Trendlyne data, Delhivery’s RSI stands at 32.9, placing it in a mid-range zone, while the Money Flow Index (MFI) at 28.1 signals oversold conditions.

The Delhivery stock continues to trade below its 50-day SMA of 444.8, but remains above the 200-day SMA of 382.9.

This positive sentiment came after Delhivery on Tuesday announced the launch of 'Delhivery International', a new strategic service aimed at empowering Indian Micro, Small, and Medium Enterprises (MSMEs). 

This new offering is an economy air parcel service designed to make global exports affordable, simple and more reliable for small businesses and enterprise customers across the country, according to the filing with the exchanges.

The service, which will be accessible through the 'Delhivery One' platform, integrates with the company's existing domestic network to ensure that even MSMEs situated in remote clusters can tap into international markets, it said. The logistics provider aims to leverage global partnerships and AI-powered tools to simplify international shipping, addressing common pain points such as geography-specific documentation and shipment visibility.

Commenting on the launch, Sahil Barua, Managing Director & Chief Executive Officer, Delhivery, said, "Enabling exports is a massive catalyst for the growth of Indian MSMEs. With Delhivery International, we are removing the friction from global trade for our customers."

Vani Venkatesh, Chief Business Officer at Delhivery, highlighted the operational challenges the service intends to solve. "Many SMEs face hurdles in cross-border logistics due to high international shipping costs, further compounded by complex and geography-specific documentation requirements, unpredictable delivery timelines and a pervasive lack of shipment visibility," Venkatesh said.

Earlier on December 7, the Gurugram-headquartered firm updated on technological advancements in rural logistics. In an exchange filing, the company said it has successfully completed the testing of its autonomous Vertical Take-off and Landing (VTOL) drone technology in Deoria, Uttar Pradesh. 

Earlier on November 6, ICICI Securities maintained a ‘Buy’ rating with a target price of Rs 600, PL Capital retained an ‘Accumulate’ rating with a target price of Rs 489 and Emkay Global also maintained a ‘Buy’ call, revising its target price to Rs 510.