Delhivery jumps 5%, gains 14% in seven straight days post Q3 results

The stock was up over 5 per cent in Tuesday's trading session, and hit a high of Rs 359 on the BSE.

Shares of Delhivery have witnessed a steady climb in the last seven trading sessions post Q3 results. The stock was up 5.5 per cent at Rs 359 in Tuesday's intra-day trades, on volumes of around 1.17 lakh shares on the BSE. Meanwhile, the S&P BSE Sensex was up 0.4 per cent at 60,921 at 10:35 AM.

The stock had gained nearly 14 per cent in the last seven straight trading sessions after reporting its December quarter earnings on February 10, 2023.

Even as the company reported a wider loss and a dip in total income (down 5 per cent) on a year-on-year basis. The earnings look relatively better on a sequential basis.

On a quarter-on-quarter basis, the company's net loss has narrowed to Rs 195.65 crore in the quarter ended December 2022 as against a net loss of Rs 254.11 crore in the quarter ended September 2022. 

Total income was up marginally by 1.9 per cent QoQ at Rs 1,918 crore from Rs 1,883 crore.

Brokerage firm ICICI Securities had maintained its 'Buy' rating on Delhivery post results, with a price target of Rs 425. 

"Given the slower-than-expected recovery in PTL, we have cut FY24E/25E revenue and EBITDA estimates by ~9 per cent each and TP by ~8 per cent. We value Delhivery using time discounted forward EV/EBITDA multiples. We discount EV calculated at 20xFY26E EV/EBITDA (at 20% discount rate) to arrive at our price target of Rs 425." the brokerage firm said in its result update.

The stock had hit a 52-week low on January 27, 2023. The stock has gained over 23 per cent from its then low. 

The stock post its listing in August 2022, had rallied to a high of Rs 607.65 - thus commanding a premium of nearly 25 per cent to its issue price of Rs 487 per share. 

However, post the massive price correction the stock now trades at a discount of over 26 per cent to the IPO price.