Hold Blue Dart Express, target price Rs 7,500: ICICI Securities

ICICI Securities has a hold call on Blue Dart Express with a target price of Rs 7,500. The current market price of Blue Dart Express Ltd. is Rs 7,351. Blue Dart Express, incorporated in 1991, is a Mid Cap company with a market cap of Rs 17703.41 Crore) operating in Logistics sector.

Blue Dart Express' key products/revenue segments include Service Charges for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 1457.13 crore, up 7.79 % from last quarter Total Income of Rs 1351.79 crore and up 9.58 % from last year same quarter Total Income of Rs 1329.71 crore. The company has reported net profit after tax of Rs 62.84 Crore in latest quarter.

Investment Rationale
Blue Dart Express' Q2FY25 performance was a mixed bag. While the company managed to maintain a healthy volume growth (in tonnage) of 11.8% YoY in an increasingly competitive and subdued operating environment, margins remained stagnant due to increasing share of surface express segment. In our view, GPI contemplated from Jan?25 may come at the cost of volumes in near term, potentially resulting in adverse operating leverage. At CMP, we perceive risk-reward balance and see the extent of GPI absorption as key. Maintain HOLD on BDE stock at an unchanged target price of Rs 7,500 (based on 35x FY26E EPS).

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of 30-Sep-2024, while FIIs owned 5.46 per cent, DIIs 12.94 per cent.