Delhivery share price: Stock gains as D-Street optimistic about growth; Credit Suisse sees 60% gains

Delhivery share price: Shares of logistics and supply chain company Delhivery surged on Thursday, December 1, as investors turn optimistic about the company's growth. The stock closed at Rs 338.80 apiece on NSE, rising 1.   

Global brokerage firm Credit Suisse has tagged an 'outperform' rating on the counter with a price target of Rs 550. It said that the industry feedback reinforces the view of the company’s strongest standing.

Funding squeeze reducing volumes may be a key near-term risk. Overall takeaways from Delhivery's perspective were +ve as the sector is growing at 17-18 per cent, it said.

The Gurugram-based company launched its initial public offer (IPO) on May 11 and make stock market debut on May 24 at a premium of 1.68 per cent.

In the second quarter of the current fiscal, Delhivery reported a loss of Rs 254 crore against a loss of Rs 635 crore clocked in the year-ago period.

Post announcement of the second quarter result, the company said that it expects moderate growth in shipment volumes through the rest of the financial year 2023.

“Our Part Truckload (PTL) business faced operational challenges in Q1FY23 due to the integration of Delhivery and SpotOn networks. However, the business is on a path to recovery and we recorded high teens growth in freight tonnage handled on a QoQ basis (Q2FY23 v/s Q1FY23),” the company has said in the exchange filing.

Delhivery has tanked nearly 36 per cent from its 52- week high of Rs 708 on NSE. In fact, Delhivery's share price has slipped below the IPO issue price of Rs 487. The company has a market cap of Rs 24.90 thousand crore.  

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