Delhivery hits 52-week low on lock-in expiry

Shares of logistics stock Delhivery today lost up to 3% to hit a new 52-week low value at Rs 340.30 as the 6-month lock-in expiry for pre-IPO investors came into effect today. Market data shows that nearly 20 million shares changed hands during the day.

Delhivery shares are now around 52% down from its 52-week high of Rs 708.45. The stock is now trading 29% from its IPO issue price of Rs 487.

Domestic brokerages are, however, bullish on the stock.


ICICI Securities, which has upgraded Delhivery to ‘buy’ rating from sell, said current valuations provide a great opportunity to buy this
high-quality stock.

“The risk-reward skew at current market price is very attractive
in our view (5.3:1). 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,” the brokerage said.

It estimates Delhivery to reduce adjusted EBITDA losses significantly (almost breakeven in Q3FY23E) and return to adjusted EBITDA profitability in Q4FY23E (~2% adjusted EBITDA margin).

Of 12 analysts with a coverage on the stock, 7 have ‘buy’ ratings and only 2 of them have ‘sell’ recommendations, showed Trendlyne data. Delhivery's average share price target signals an upside potential of 44.8%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)