Logistics company Delhivery's shares jumped on Monday in a recovery from a record low hit in the previous session. The stock of Gurugram-based Delhivery rose by Rs 20.1 or 6.6 per cent to end at Rs 323.2 apiece on BSE. At this level, the stock changed hands at a discount of 33.6 per cent to its issue price. 

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Analysts believe the chart structure of the stock looks weak, and a sustained upmove is unlikely at the current juncture. 

Overall upside momentum in Delhivery shares can only occur above a decisive breakout above the Rs 370 mark. 

Image Source: Stock Edge

The overall structure as well as charts of the company are weak, he pointed out. 

On Friday, Delhivery shares hit a record low of Rs 299.5 apiece on BSE — 38.5 per cent below the upper end of its IPO price range.

Delhivery shares have corrected more than 50 per cent from their peak in August 2022 owing to concerns around the sustainability of revenue growth and the path to profitability, according to ICICI Securities. 

ICICI Securities has a 'buy' call on Delhivery with a target price of Rs 460. The brokerage highlighted five points as rationale behind its rating: 

  • ​Lowest cost structure against to peers across first-, mid-, and last-mile logistics in the express parcel business
  • Technology and trust moat should strengthen its dominant share in niche segments
  • Hands-on management ensures agile decision-making and timely intervention
  • Strong balance sheet should help sustain investments through periods of tight liquidity
  • Uncharacteristically high brand recall among end-users could make it a key beneficiary