Buy Blue Dart Express; target of Rs 7,860: Motilal Oswal

Motilal Oswal is bullish on Blue Dart Express has recommended buy rating on the stock with a target price of Rs 7,860 in its research report dated May 03, 2024.

Broker Research

May 06, 2024 / 12:18 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Blue Dart Express

Blue Dart Express’s (BDE) revenue grew 8.7% YoY to INR13.2b in 4QFY24 (in line). BDE handled 0.29m tons of cargo volume (+8.7% YoY). The realization remained flat YoY at INR 44.5/kg. It carried 91m shipments in 4Q. EBITDA margin came in at 10.5% in 4Q (our est. 10.3%). The margin was flat YoY and increased by 80bp QoQ, mainly due to price hike by BDE and improved utilization of newly added aircraft. EBITDA increased by 9% YoY to INR1.4b (in line). APAT grew 8% YoY to INR761m (our est. INR813m).

Outlook

Improved utilization of the newly added aircraft, along with network expansion, is likely to result in higher volumes for the company. With improved volumes, better realizations, and an increasing market share of BDE in the surface express segment, we expect the company to register a CAGR of 17%/32%/38% in revenue/EBITDA/PAT over FY24-26. We largely retain our estimates and maintain our BUY with a revised TP of INR 7,860 (based on 20x FY26E EV/EBITDA).

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