Buy Delhivery; target of Rs 540: Motilal Oswal

Motilal Oswal's research report on Delhivery

According to the RBI, total electronic payments surged to INR11.3t on 22nd Sep’25, nearly ten times higher than the INR1.18t recorded the previous day. This sharp spike was primarily driven by the recent GST rate cut and a strong boost in festive season consumption, reflecting heightened transaction activity across retail and e-commerce channels. According to the players in the automotive industry, there has been a surge in demand for cars and two-wheelers following the GST rate cut. This sudden uptick in vehicle sales has led to capacity constraints across the logistics sector. Both transporters and service providers struggle to meet the heightened movement requirements of OEMs and dealers during the ongoing festive and post-GST revival phase.

Outlook

We expect the company to report a CAGR of 14%/38%/53% in sales/ EBITDA/ APAT over FY25-28. Reiterate BUY with a TP of INR540 (based on DCF valuation).

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