Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strong demand and strategic investments in technology.
Basis of our Recommendation
Delhivery is poised for robust growth driven by strong demand in its express and PTL segments, supported by strategic investments in technology and automation. The company anticipates significant margin expansion and a favorable industry environment, with a projected revenue CAGR of 12% for Express and 17% for PTL over the next few years. However, rising fuel costs and a tightening labor market present operational risks that need to be managed effectively.
Why We Like This Stock
- Strong revenue growth driven by increased demand in express parcel services
- Strategic investments in technology and automation enhancing operational efficiency
- Positive market sentiment with a projected revenue CAGR of 12% for Express and 17% for PTL
Things To Watch Out For
- Rising fuel prices and a tightening labor market present operational risks
- Potential external challenges in the operating environment
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,142 | 8,932 | 10,508 | 12,152 | 13,994 |
| Profit Before Tax (Cr.) | -264 | 136 | 166 | 468 | 697 |
| PBT Margin | -3.2% | 1.5% | 1.6% | 3.9% | 5.0% |
| Net Profit (Cr.) | -264 | 135 | 167 | 351 | 523 |
| EPS | -3.5 | 1.8 | 2.2 | 4.7 | 7.0 |
Company Overview
Show Company Profile
Delhivery Limited provides supply chain solutions in India. It offers express parcel services; part truckload services; supply chain services that provide integrated warehousing and transportation services; point-to-point and multi-point full-truckload services; and cross-border services comprising door-to-door and port-to-port parcel and freight shipping services. The company also provides Delhivery Rapid, a network of shared in-city forward fulfillment centers, as well as Delhivery Direct, an on-demand intra-city pickup and delivery service. In addition, it offers SaaS and data solutions, such as the OS1 platform that provides APIs and SDKs; TransportOne, a transport management system solution; and LocateOne and RTOne data solutions for e-commerce companies. The company provides its services to e-commerce marketplaces, direct-to-consumer e-tailers, enterprises, FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive, and manufacturing industries. Delhivery Limited was incorporated in 2011 and is based in Gurugram, India.