Delhivery shares fall 12% after Q4 results but brokerages see upside. Know why
Delhivery share price fell 11.92 per cent to ₹383.90 compared to its previous close at ₹435.90.
Delhivery share price: Shares of Delhivery Ltd fell 12 per cent today (May 21) after the company posted Q4 results. Although, brokerages remain mostly positive on the stock post earnings in which Delhivery posted a loss of ₹68.5 crore in the quarter ended 31 March, 2024- down 57 per cent on a year-on-year (YoY) basis from a loss of ₹159 crore in the corresponding period last year. The company also said that its Executive Director and Chief Business Officer (CBO), Sandeep Kumar Barasia has resigned and July 1 will be his last working day.
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Delhivery share price today
Shares of the company fell 11.92 per cent to ₹383.90 compared to its previous close at ₹435.90. The total market capitalization slipped below more than ₹30,000 crore.
What brokerages said on Delhivery share price
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Kotak Institutional Equities added a ‘buy’ tag to the stock and noted, “Results were solid on other metrics, key among which were resilient margin in Express Parcel, healthy growth at improving margin. Capex appears to peak and working capital has improved, boosting the case for cash break even in FY2026. We cut Ebitda estimates by 15 per cent and 12 per cent for FY2025 and 26, respectively and revise DCF-based fair value to ₹545.”
Prabhudas Lilladher noted, “The strong growth in the PTL network is leading to a continuous improvement in asset utilization. The management expects continued volume growth in the segment in FY25E. We change our stance to 'buy' rating with a target of ₹530 based on DCF, on the back of faster than expected recovery in the PTL margin.”
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Nuvama Institutional Equities retained a ‘hold’ rating on the stock and noted, “Losses had been narrowing but still persist. Profitability remains the key for the stock price to start an upward trajectory. We have increased our estimates by 1-6 per cent over FY25E/26E with a revised DCF based target price of ₹463, from ₹450.”