Delhivery, the Indian logistics company, has experienced a decline in share price following a block-deal transaction on February 22. The company’s shares fell by over 2.5 percent in early trade after 1.7 percent equity worth Rs 410 crore changed hands at an average price of Rs 338 per share. The buyers and sellers involved in the transaction were not immediately identified.
As of 10.45 am on the National Stock Exchange, Delhivery’s stock was priced at Rs 338.60 apiece, marking a decline of 2.95 percent from the previous day’s close. Trading volumes for the day were notably high, with 13 million shares being traded, as compared to the 20-day average of 1.4 million.
This decline in share price comes as Delhivery faces several challenges. In October 2022, the company stated that it expected moderate growth in shipment volumes for the rest of the financial year, which caused the stock to experience its largest intraday drop of 18 percent. In November 2022, pre-IPO investors began selling their shares, further contributing to the downward pressure on the stock.
Delhivery’s Q3 results also did not inspire confidence, with the company reporting a net loss of Rs 195.7 crore and a fall in revenue from operations for the October-December period. Despite these challenges, brokerages remain optimistic about the company’s long-term growth prospects. In a recent report, Jefferies maintained a “buy” tag on the stock with a target of Rs 570, citing underestimation of growth potential in B2B, operating leverage, and low e-commerce penetration.
Morgan Stanley, which acquired a 2.5 percent stake in Delhivery in the recent block-deal transaction, also has a positive outlook on the stock, with a target of Rs 370. Softbank, which holds an 18.42 percent stake in Delhivery, has not divested its stake, and neither have Fedex (2.87 percent) and Nexus Venture Partners (9.1 percent).
Despite the current decline in share price, Delhivery remains a company with significant potential for growth in the Indian logistics market.
Twitter
