ICICI Direct is bullish on BlueDart Express has recommended buy rating on the stock with a target price of Rs 3650 in its research report dated February 01, 2019.
ICICI Direct's research report on BlueDart Express
Revenues grew 21% YoY to RS 855 crore (I-direct estimate: RS 775 crore). Both B2B and B2C continued to show good traction during the quarter, post double digit growth in H1FY19 EBITDA margins contracted 438 bps YoY to 7% (I-direct estimate: 6%) with an absolute EBITDA de-growth of 25% YoY to RS 60 crore (I-direct estimate: RS 47 crore) Subsequently, PAT de-grew 31% to RS 31 crore but came in above I-direct estimate of RS 24 crore mainly due to a strong operational performance above estimates.
Also, as the economy improves, given its strong client base, BDE’s business model provides earnings visibility. However, given time lag with which intended capex and strategy will yield result, we value the stock at 42x FY21 multiple to arrive at a target price of RS 3650 with BUY rating.
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