The shares of India’s largest integrated third-party logistics service provider gained traction this week after Macquarie gave an outperform call on the company with a 34 percent upside.
On Friday, Delhivery Ltd shares gained an intraday high of 2.2 percent to Rs 396.05 on the National Stock Exchange. The company has a market capitalization of Rs 28,479 crore.
Delhivery’s revenues declined by 8 percent year on year from Rs 1,796 crore in Q2FY23 to Rs 1,942 crore in Q2FY24, while net losses reduced from a loss of Rs 254 crore to Rs 103 crore.
Delhivery Ltd shares have gained 17 percent on a year-to-date basis and 21 percent in a year.
Macquarie has maintained its outperform rating on Delhivery. The brokerage has given the target price of Rs 520, representing an upside of 34 percent from Friday’s closing price of Rs 387.45.
The brokerage expects the company to grow rapidly in the second half of the fiscal year 2024. Furthermore, the brokerage maintained its forecast of 15 percent Gross Merchandise Value (GMV) growth for the overall e-commerce space.
Delhivery Ltd is engaged in the business of providing a full range of Logistics services, including delivery of express parcels and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software.
The company also provides value-added services such as e-commerce return services, payment collection and processing, installation & assembly services, and fraud detection.
In recent months, Delhivery Ltd acquired an additional stake of 4.75 percent in Falcon Autotech Private, a warehouse automation startup. After the additional acquisition of stake, the company holds a 39.33 percent stake in the Falcon Autotech Private.
Delivery increased its stake in Falcon Autotech Private at a value of Rs 5,920 per share for an aggregate purchase price of Rs 50.04 crore. The company’s strategic
acquisition is aimed at shortening the project timelines and adopting new technologies and features.
Falcon Autotech is in the business of warehouse automation, with a net worth of Rs 197.56 crore as of March 31, 2023. The company recorded a turnover of Rs 280.70 crore during FY23.
With the help of Falcon Autotech, Delhivery Ltd launched India’s largest trucking logistic terminal mega gateway in Bhiwandi. Built over 1,200,000 sq ft. of land area.
The trucking terminal facilities combine an automated hub, sortation, returns, and freight operations with the capability to handle Delhivery’s parcel and part truckload freight volume simultaneously.
Written by Omkar Chitnis
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