Delhivery Shares Fell 5%

Delhivery shares saw a fall of up to 5 percent today on May 18. This stock fell by about 4 percent on BSE and closed at Rs 435.90.

Actually, the company has released weak results in the fourth quarter of FY24. The logistics solutions company reported a loss of Rs 68.5 crore in the March quarter compared to a profit of Rs 11.7 crore in the December quarter.

This is the reason why selling in the company's shares was seen today. With this decline the market cap of the company has decreased to Rs 32,145.18 crore.

How were Delhivery's quarterly results?

Delhivery's losses in the January-March quarter have reduced on an annual basis. The company had suffered a loss of Rs 159 crore in the same quarter last year.

Delhivery's revenue increased 12 percent year-on-year to Rs 2,076 crore in the March quarter.

The company's EBITDA increased to Rs 46 crore from Rs 13 crore in the year-ago period.

The company's margin stood at 2.2 per cent, below market estimates of 2.6 per cent, as gross margin expanded by 58 bps.

Delhivery's integrated offering, tech investments and scale advantages have allowed it to consolidate its leadership position in the 3PL express market as well as gain market share in the PTL segment.

What is the brokerage's opinion on Delhivery?

Delhivery will diversify its revenue sources with a focus on growing other businesses such as supply chain services, brokerage firm MK Global said in a report.

The brokerage expects the company to turn PAT positive in FY25, as reduction in capex and net cash balance sheet will help mitigate the impact on volumes in the short term.

The brokerage has maintained 'Buy' rating on the stock with a target price of Rs 500.