Delhivery Shares Hit Fresh 52-Week Low At INR 312.40

Shares of logistics major Delhivery plummeted 5% to hit a fresh 52-week low of INR 312.40 apiece during the intraday trading on the BSE today (January 22).

However, the stock pared some of its losses later and was trading 2.86% lower at INR 319.45 at 2:31 PM. 

At the time of writing, the company’s market capitalisation stood at INR 23,794.55 Cr (around $2.75 Bn).

Delhivery’s share price has nosedived more than 18% over the last 12 months and the stock is currently trading 34% below its 52-week high of INR 488.05. 

In its latest research report on Delhivery, Prabhudas Lilladher recommended a ‘HOLD’ rating on the stock with a target price of INR 361. This implies an upside potential of nearly 10% from the stock’s closing price on Tuesday.

Prabhudas Lilladher said that Delhivery’s B2C express volume growth has come under pressure in the last three quarters due to rising insourcing by Meesho.

“Near-term growth headwinds are likely to persist even if we assume Meesho’s insourcing exercise has stabilized given the slowdown in overall consumption space and rising competitive threat from quick commerce,” it added.

Delhivery reported a consolidated net profit of INR 10.2 Cr in the second quarter of the financial year 2024-25 (Q2 FY25) as against a loss of INR 102.9 Cr in the year-ago quarter.

Sequentially, net profit declined from INR 54.3 Cr.

Revenue from services jumped 13% to INR 2,189.7 Cr in the second quarter of the ongoing financial year from INR 1,941.7 Cr in the year-ago period.

Recently, Delhivery started piloting a two-hour delivery service in Bengaluru to address the needs of brands across categories such as beauty and personal care, apparel, and fashion.

The company plans to expand its rapid commerce service to other metro cities such as Hyderabad, Chennai, Delhi NCR, Mumbai, Pune and Ahmedabad soon.

In August last year, Delhivery said it would launch a network of multi-tenant dark stores for “rapid in-city delivery” for ecommerce companies.