Sell Blue Dart Express, target price Rs 3430: ICICI Securities

ICICI Securities has sell call on Blue Dart Express with a target price of Rs 3430. The current market price of Blue Dart Express Ltd. is Rs 5632.

Time period given by analyst is one year when Blue Dart Express Ltd. price can reach defined target.

Blue Dart Express Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 13406.16 Crore) operating in Logistics sector.


Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 872.81 Crore, down -10.54 % from last quarter Total Income of Rs 975.64 Crore and up 108.39 % from last year same quarter Total Income of Rs 418.83 Crore. Company reported net profit after tax of Rs 31.27 Crore in latest quarter.

Investment Rationale
The brokerage assumed a long-term volume growth assumption of 6-7% p.a. for BDE’s airfreight, which also dictated margin assumptions for the business. It has factored in the bulge for H1FY22, and assumed pricing pressure post the same. Upside risks to earnings may arise from continued strength in pricing for H2FY22 as well. It maintains SELL with a target price of Rs3,430/share.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of June 30, 2021, while FIIs held 2.5 per cent, DIIs 10.1 per cent and public and others 12.4 per cent.