Delhivery Shares Jump 4.6% In Morning Trade

Shares of logistics giant Delhivery surged as much as 4.6% during early trading hours on the BSE today (February 13).

Even at 10:55 AM, the stock was hovering at the same price, with its market capitalisation at INR 21,333.30 Cr. At the same time, the trade volume stood at 19.3 Lakh.

The stock’s rally comes despite the company receiving a tax demand notice of INR 3.32 Cr from the Goods and Services Tax (GST) authorities in West Bengal.

The authorities have demanded INR 3.02 Cr in tax while imposing an additional penalty of INR 30.21 Lakh.

While the company noted that there would be no material impact on its financials, operations, or other activities, it stated that it intends to file an appeal against the order with a higher authority.

Just a day before receiving this GST notice, the company allotted over 8.2 Lakh equity shares under its various employee stock option (ESOP) schemes, taking its overall paid-up share capital to INR 74.44 Cr from INR 74.35 Cr.

The stock has been on a downward spiral despite reporting a strong Q3 performance last week on February 7. 

Marking its third consecutive profitable quarter, Delhivery’s consolidated net profit surged 114% to INR 24.98 Cr in the third quarter of the fiscal year 2024-25 (Q3 FY25), up from INR 11.70 Cr in the year-ago quarter, driven by strong revenue growth. Sequentially, net profit jumped 145% from INR 10.20 Cr.

Revenue also climbed 8% YoY and 9% QoQ to INR 2,378.29 Cr during the quarter under review. Despite this performance, the stock has dipped 13.60% at the previous closing price since its Q3 result announcement.

Taking a broader time frame into account, the stock has declined 10.87% in the last month and 34.75% over the past year.

Brokerages have also reflected a bearish sentiment on the stock. While Goldman Sachs maintained a ‘neutral’ rating on Delhivery, it lowered its target price to INR 370 from INR 400. 

Meanwhile, Morgan Stanley downgraded the stock to ‘equal-weight’ from ‘overweight’ and reduced its target price to INR 320 from INR 450, as per reports.

Delhivery made several announcements, including the approval to liquidate Delhivery Bangladesh Logistics Private Limited and key changes to its board of directors. 

Emcure Pharmaceuticals’s executive director Namita Thapar and boAt’s cofounder and CEO Sameer Mehta have been appointed as non-executive independent directors on Delhivery’s board, effective from February 17, 2025. Besides this, former Airtel executive Vani Venkatesh will take over as the company’s chief business officer, starting February 28.