Shares of Delhivery gained over three percent in the morning session on November 18 after the logistics player posted a profit for the second consecutive quarter.
Delhivery posted a profit of Rs 1o.2 crore in Q2 of the current financial year ahead of a busy festive season, which fuels e-commerce shopping, a primary source of income for the logistics company. In the same period last year, the company had incurred a loss of Rs 103 crore.
At the same time, Delhivery’s revenues increased 13 percent from Rs 1,941.7 crore in Q2FY24 to Rs 2,189.7 crore in Q2FY25, regulatory filings showed.
At 9.20 am, shares of Delhivery were quoting Rs 342.65 on the NSE, higher by 3.6 percent compared to the previous close.
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Nuvama Institutional Equities upgraded Delhivery to 'buy' from 'hold'. However, the brokerage cut its target price to Rs 400 per share, down from Rs 473 earlier.
"While margins are likely to recover once the investments towards upgradation are over, we believe the current price point creates a reasonable level for entry. We are cutting estimates to reflect Q2 margin showing and outlook. Delhivery can sustain high valuation, in our opinion, given its market leadership in express parcel and ability to create and scale new segments," said the brokerage.
Emkay Global retained its 'buy' tag, but cut its target price on the player to Rs 475 apiece. "Industry headwinds have caused the volume trajectory in the B2C segment to be muted. We remain circumspect of management commentary around the limited impact on volumes owing to insourcing, but draw comfort from initiatives planned for bolstering volume growth," said the brokerage.
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