Delhivery Shares Rise Over 6%, Hit New All-Time High

Shares of listed logistics unicorn Delhivery continued its winning streak for the second straight session, ending over 6% higher at INR 674.4 on the BSE on Wednesday (July 20). 

The shares made a new all-time high of INR 683.35 during the intraday trade on Wednesday. 

Delhivery shares have surged about 14% in the last two sessions. The shares are currently trading over 36% higher from its listing price of INR 493 on the BSE. 

The BSE benchmark index Sensex ended 1.15% higher at 55,397.53 on Wednesday.

On Tuesday, a report said that the logistic startup’s institutional stakeholders voted against its employee stock ownership plan (ESOP) schemes.

Delhivery, founded by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati and Suraj Saharan, got listed on the NSE and the BSE on May 24 this year. The shares made their stock market debut on a premium to the issue price. However, they fell below the listing price to INR 466.5 mid-June. 

Since the beginning of July, despite major volatility in other new-age tech stocks, Delhivery shares have been on a strong upward trend. Between July 1 and July 7, the stock surged in four consecutive sessions. Despite mild dips in a few sessions in between, the startup’s shares made new records every week over the last three weeks.

Many brokerages have initiated coverage on the stock. While few of them are bullish on it, others have taken a cautious approach.

Initiating its coverage with a ‘hold’ rating, ICICI Securities said, “We see significant scope of operating leverage with global best practices in distribution, sorting as well as consolidation likely streamlining processes.”

“The story of Delhivery, through our lens, is to drive relentless profitability in B2C ecommerce segment, and turn the operations profitable enough and create a profit pool that was long considered to be elusive,” the brokerage added.

On the other hand, Edelweiss started its coverage with a ‘buy’ rating, saying that compared to other new-age players such as Zomatoa and Nykaa, Delhivery has a superior combination of a quicker breakeven and faster-growing cash flow.

International brokerage Credit Suisse also started the coverage with an ‘outperform’ rating citing a favourable industry outlook, Delhivery’s incremental growth that aids its profitability, among others.

However, Goldman Sachs has a bearish view on the stock as it initiated the coverage with a ‘neutral’ rating.

Among the other new-age tech stocks, Nykaa’s parent FSN E-Commerce ended Wednesday’s session marginally higher from Tuesday’s close, while Zomato and Paytm closed lower.