Buy Blue Dart Express; target of Rs 7330: ICICI Securities

ICICI Securities is bullish on Blue Dart Express has recommended buy rating on the stock with a target price of Rs 7330 in its research report dated August 03, 2025.

Broker Research

August 05, 2025 / 20:51 IST

BUY

ICICI Securities's research report on Blue Dart Express

Blue Dart Express’ (BDE) Q1FY26 performance was below consensus estimates. Key points: 1) Number of shipments rose 4.4% YoY while volume (in tonnage) grew 8.6% YoY. 2) EBITDA margin declined to 13.6% and was mainly impacted by change in i) customer mix, ii) product mix and iii) lane mix. 3) New freights are currently running at optimal utilisation levels of ~85%. 4) Revenue growth for i) B2C was ~20.2% and ii) B2B was ~2.4%. 5) Surface cargo growth was ~13% while air cargo growth was 2.2%, YoY. Going ahead, we have factored in 11.4% revenue CAGR through FY27E but reduced EPS by 18.4%/1.8% for FY26/27E, respectively, based on Q1 underperformance. Further, given the recent correction in the stock price,

Outlook

We upgrade BDE to BUY from Add with a revised TP of INR 7,330 (earlier INR 7,470), based on 35x FY27E EPS.

For all recommendations report, click here