Buy-the-dip investors were left nursing losses as shares of logistics firm Delhivery continued their slide for another day on October 21 racking up 31 percent losses over the two sessions.
The stock dipped over 18 percent on October 21 extending 16 percent slump in the previous session, hammered by management commentary that warned of softening demand.
The company said it expects moderate growth in shipment volumes for the rest of FY23 due to high inflation, average user spends, and total active shoppers flatlining or declining during the ongoing festive season.
In a letter to shareholders filed with the exchanges on its performance in the September quarter, Delhivery said that shipment volumes in its supply chain services and truckload businesses declined sequentially, owing to seasonality in customers’ businesses.
Shares of the company are now trading over 20 percent below the IPO price of Rs 487, joining new age peers Zomato, Paytm and CarTrade who have slid below the issue price.
Following the sharp drop on October 20, many investors thought it was a good buy-on-dip opportunity. However, they were left without shelter the following day. An investor on Twitter said he suffered a loss of Rs 82,000 in a day as he took a big bet on the company yesterday.
In its update, the company did not share any operating metrics saying that numbers will be shared once the board approves audited results for the quarter.
“Going forward we remain watchful of the market sentiments. We have made sufficient capacity investments in FY22 and early FY23 to sustain our current rate of growth and expect new mega-gateway and sorter decisions only by early FY24,” the company added.
Delhivery’s revenue from operations had dropped 16 percent sequentially to Rs 1,746 crore in the June quarter at a time when the e-commerce industry, the biggest revenue chunk, saw sales dip amid rising inflation.
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