Shares of Delhivery Ltd. witnessed a significant drop of 12% on May 21st, reflecting investor sentiment after the company’s Q4 results announcement. The total market capitalization of the logistics giant fell below ₹30,000 crore as the stock price plummeted to ₹383.90.
Despite the loss reported by Delhivery in the quarter ended March 31, 2024, brokerages have maintained a generally positive outlook. Kotak Institutional Equities initiated coverage with a ‘buy’ rating, citing solid results and resilience in margins for its Express Parcel segment. The brokerage firm revised its DCF-based fair value to ₹545.
Prabhudas Lilladher also upgraded its stance to ‘buy’ with a target price of ₹530, attributing the change to the strong growth in Delhivery’s PTL network. The brokerage expects continued volume growth in this segment in FY25E.
Meanwhile, Nuvama Institutional Equities retained a ‘hold’ rating, emphasizing the need for improved profitability to drive stock price appreciation. The brokerage firm increased its earnings estimates and revised its DCF-based target price to ₹463.
Overall, the brokerage community remains optimistic about Delhivery’s prospects, despite the Q4 loss. However, investors are cautious and await further developments before making significant investment decisions.
