Logistics company Delhivery's narrowing quarterly loss fails to excite Street

Gurugram-based logistics company Delhivery's shares traded under pressure on Monday, after the company reported a narrowing of its net loss on a quarterly basis. The Delhivery gave up initial gains to decline as much as 1.9 per cent to Rs 413.4 on BSE.

Most analysts held positive views on the stock after the earnings announcement.

After market hours on Friday, Delhivery reported a net loss of Rs 89.4 crore for the first quarter of the current financial year as against a net loss of Rs 399.3 crore for the corresponding period a year ago.

Its revenue increased 10.5 per cent on a year-on-year basis to Rs xx crore, according to a regulatory filing.

The company reported Rs 13.1 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA) loss, a widely used indicator determining the core corporate profitability of a company. For the year-ago period, its EBITDA loss had stood at Rs 254.2 crore.

What analysts say on Delhivery shares

Zee Business analyst Kushal Gupta recommends buying Delhivery shares in the spot market for a target of Rs 435 with a stop loss at Rs 413.

CLSA maintained a 'buy' call on Delhivery, raising its target price for the logistics stock from Rs 497 to Rs 550.

Morgan Stanley downgraded the stock from 'overweight' to 'equal-weight' and raised its target price from Rs 415 to Rs 460.

Morgan Stanley rated the company's revenue slightly below than its estimate, while the reported EBITDA slightly beat the consensus' expectations for the Q1 results.

The rating agency said that the logistics firm's revenue and volume in its express parcel business were surprisingly positive, while it missed estimates in most other segments.

Jefferies has maintained its buy call on Delhivery, raising its target price from Rs 570 to Rs 605. Macquarie has also maintained its outperform call on Delhivery (CMP: 421) with a target price of Rs 460.