Delhivery share price falls almost 14% in 3 straight sessions amid poor Q1 show – know what brokerage says

Delhivery share price: Declining for the third straight session, shares of logistics and supply chain company – Delhivery Limited plunged by 7.5 per cent to Rs 555.2 per share on the BSE intraday during Thursday’s trading session. The stock has slumped nearly 14 per cent in the last three sessions post weak Q1FY23 performance. 

In the April-June quarter of this fiscal, the company’s net loss widened to Rs 399 crore as compared to a net loss of Rs 130 crore in the year-ago period. While the firm's total income rose by 32 per cent to Rs 1,795 crore in Q1FY23 as compared to Rs 1,364 crore in Q1FY22. 

“Our EBITDA margins were temporarily affected through the integration phase with Spoton as a result of inherent seasonality in the PTL business, slightly slower than planned phasing of customer restarts and retention of capacity to maintain service quality and in anticipation of H2 volumes," said Abhik Mitra, Chief Customer Experience Officer, Delhivery and CEO of Spoton. 

Delhivery had launched its public offer in May 2022 and was subscribed 1.63 times. It got listed on May 24, at an issue price of Rs 487 apiece has gained nearly 21 per cent since then. The company provides a full range of logistics services, heavy goods delivery, and warehousing. 

Delhivery’s business is built around its superior mid-mile aggregation, fuelled by two standout enablers: a tech capability honed over the past decade and a unique ‘mesh’ network that drives optimal utilization, a domestic brokerage firm Edelweiss Research said in a note. 

“This competitive edge is hard to replicate, and engine that helps in creating economics of scale and thus, deliver superior unit economics. This moat should allow Delhivery to gain market share and grow at over 25 per cent (essential to sustain valuation),” the brokerage said. 

At the market close, shares of Delhivery tumbled nearly 6 per cent to Rs 565 per share on the BSE as compared to a 0.88 per cent rise in the S&P BSE Sensex.