Buy Delhivery, target price Rs 425: ICICI Securities

ICICI Securities has buy call on Delhivery with a target price of Rs 425. The current market price of Delhivery is Rs 365.15.

Delhivery, incorporated in the year 2011, is a Small Cap company (having a market cap of Rs 26663.69 Crore) operating in Logistics sector.

Delhivery key Products/Revenue Segments include Sale of services and Traded Goods for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 1934.22 Crore, up .84 % from last quarter Total Income of Rs 1918.11 Crore and down -9.06 % from last year same quarter Total Income of Rs 2127.02 Crore. Company has reported net profit after tax of Rs -159.44 Crore in latest quarter.

The company’s top management includes Mr.Deepak Kapoor, Mr.Srivatsan Rajan, Mr.Saugata Gupta, Mr.Romesh Sobti, Ms.Kalpana Jaisingh Morparia, Mr.Suvir Suren Sujan, Mr.Donald Francis Colleran, Mr.Kapil Bharati, Mr.Sandeep Kumar Barasia, Mr.Sahil Barua, Ms.Aruna Sundararajan. Company has S R Batliboi & Associates LLP as its auditors. As on 31-03-2023, the company has a total of 73 Crore shares outstanding.

Investment Rationale
While growth concerns in the e-commerce business remain, the brokerage thinks the steady improvement in market share proves that Delhivery is providing a superiorproduct compared to peers. Also, management sounded confident that even if captive logistics arms are opened up for 3PL use, it is unlikely to impact their market position.

Further, the brokerage thinks steady improvement in PTL volumes should help to drive profitability further over the medium term.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Mar-2023, while FIIs owned 67.63 per cent, DIIs 13.03 per cent.