Delhivery jumps 3% after Macquarie sees 48% upside for stock

The shares of Delhivery rose over 3 percent on March 21 after international brokerage Macquarie issued a bullish call for the stock. The shares of the company were hovering around Rs 264 apiece in morning trade.

Macquarie kept an 'Outperform' call on Delhivery stock, while keeping a target price of Rs 380 per share. The latest target price implies an upside potential of nearly 48 percent from its previous closing price of Rs 257 per share. This comes despite the recent downfall in the stock, falling nearly 40 percent from its September levels as against the 17 percent fall in the Nifty smallcap index.

The international brokerage said that the primary driver for the stock's recent fall is the sharp changes in third party logistics industry structure, fuelled by its key customer Meesho's internalisation push. Notably, the e-commerce platform Meesho is reportedly working to launch an IPO in India, after reverse-flipping from US.

Macquarie added that despite the poor near-term visibility for Delhivery's stock, it expects the company to accelerate its market share in this 'Winner-Takes-All' industry.