Kotak Securities upgraded the rating for Delhivery Ltd stock to 'Buy' from 'Add' while also hiking the target price of the stock to Rs 570 from Rs 500. The new target price set by the brokerage firm indicates a 23 percent upside for the stock from its current market price.
Kotak Securities said that it believes that the conditions are apt for the firm to take the bold call and e-commerce players are realising that "there isn't another Delhivery".
Companies operating in the same space as Delhivery have a limited defence against the unrelenting pricing pressure of Delhivery, said the brokerage firm. "Unlike Delhivery, its peers have not been able to meaningfully improve cost structure with higher volumes and have seen their losses accelerate faster than sales," pointed out Kotak Securities.
The brokerage firm said that Delhivery's business model allows the company to magnify its gains from volume gains.
On March 4, ICICI Securities also said in a report that amongst midcap companies, the brokerage firm is bullish on Delhivery. The brokerage had set Rs 540 as the target price for Delhivery shares while the stop loss was seen at Rs 437.
While Delhivery shares have gained over 20 percent in the year-to-date, they have shed nearly 2 percent in last five sessions.
At 12:43 pm, shares of Delhivery were up 1.3 percent at Rs 464.50.
Also Read | Delhivery Consolidated December 2023 Net Sales at Rs 2,194.47 crore, up 20.32% Y-o-Y
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