CA Swift Investments on Monday divested a 2.5 per cent stake in logistics firm Delhivery Ltd for ₹ 607 crores through an open market transaction. It is a special-purpose vehicle owned and controlled by Carlyle Group which held a 5.07 per cent stake in the company.
Delhivery’s pre-IPO lock period ended and its shares were trading at ₹ 333.40 apiece on Tuesday, down 3.46 per cent in two days. CA Swift Investments offloaded 1,84,04,607 shares, amounting to a 2.5 per cent stake in the company, according to the bulk deals data available on the National Stock Exchange (NSE). The shares were sold at an average price of ₹ 330.02 apiece, taking the transaction value to ₹ 607.38 crores.
Delhivery launched its initial public offer (IPO) on May 11 and made its market debut on May 24. It got listed with a nearly 2 per cent premium, at ₹ 495.20, against its issue price of ₹ 487.00. It reached a 52-week high of ₹ 708.00 apiece on July 21, 2022, and a 52-week low of ₹ 329.90 on November 21, 2022. Its share price has fallen by 37.80 per cent since its listing.
The supply-chain company narrowed losses to ₹ 254 crores against a loss of ₹635 crores in the corresponding period a year ago. Its revenue during the July-September quarter (Q2FY23) came in at ₹1,796 crore, which is 22 per cent higher than ₹ 1,497.7 crore in the year-ago quarter.
CLSA has a buy call on the shares of Delhivery with a target price of ₹ 532.00. This implies an upside of 59.56 per cent as compared to its current share price. It said that the long-term growth outlook remains intact.
“Adjusted EBITDA margin improved by 550 bps QoQ. A pickup in PTL and Express parcel volume is likely to help improve adjusted EBITDA,” CLSA said in a note.
Domestic brokerage ICICI Securities has upgraded the stock to ‘buy’, with a target price of ₹ 460 per share. This translates to an upside of 37.97 per cent.
“While we acknowledge growth has been slowing in e-commerce sales in FY23, we believe it is a transient issue and is unlikely to be symptomatic of structural weakness in the space,” ICICI Securities noted.
It added that A low-cost structure compared to peers, technology moat, strong balance sheet and high brand recall augur well for the company.
Written by Simran Bafna
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