Macquarie bullish on this cheapest logistics solutions provider; sees over 21% potential upside

Shares of logistics solution provider- Delhivery are in focus in Thursday's session (December 12) after global brokerage Macquarie has maintained its previous 'outperform' stance on the counter with a target of Rs 460. The set target implies an upside of over 21 per cent.

In the previous session, the stock ended tad lower at Rs 379.35 per share on the BSE.

The brokerage believes Delhivery is looking to drive market share gains with pricing action. Also, it added that the threat of quick commerce (QC) for e-commerce companies is overblown.

Macquarie stated that with the scaling up of the company's part truckload (PTL) business, operartional efficiencies of the country's largest logistics company will also scale-up.

The brokerage pointed out that the company's management explained specifics around why or how the company remains the cheapest logistics service provider globally. Further, the company views the significant cash balance to the tune of $650 million as its strategic moat compared to peers.

Hence on these grounds, the brokerage believes the company is well-placed to consolidate market share in e-commerce logistics.