Sell Blue Dart Express, target price Rs 4426: ICICI Securities

ICICI Securities has sell call on Blue Dart Express with a target price of Rs 4426. The current market price of Blue Dart Express Ltd. is Rs 6899.75. 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 16261.82 Crore) operating in Logistics sector.

Blue Dart Express Ltd. key Products/Revenue Segments include Service Charges for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 1269.11 Crore, up 12.33 % from last quarter Total Income of Rs 1129.84 Crore and up 21.71 % from last year same quarter Total Income of Rs 1042.70 Crore. Company reported net profit after tax of Rs 123.42 Crore in latest quarter.

Investment Rationale
The brokerage maintains SELL on Blue Dart with a target price of Rs4,426/share. It continues to work with long-term volume growth of 5-8%. It has now assumed 1% pricing decline for FY23/24E, and increase in FY22E shipment volumes by 4%. While the number of parcels have increased by 12%, tonnage increased only by 4% in FY22E as weight per parcel has gone down in 9MFY22E. More ecommerce parcels have moved to air in 9MFY22 and/or BDE has significantly gained those parcels in absence of bellycargo. It has also reduced interest and depreciation given 9MFY22 trajectory for FY22/23E.

Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 31-Dec-2021, while FIIs owned 3.21 per cent, DIIs 9.38 per cent.