Delhivery Ltd., incorporated in the year 2011, is a Small Cap company (having a market cap of Rs 46534.84 Crore) operating in General sector.
Delhivery Ltd. key Products/Revenue Segments include Sale of services and Traded Goods for the year ending 31-Mar-2021.
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1794.54 Crore, down -15.63 % from last quarter Total Income of Rs 2127.02 Crore and up 31.56 % from last year same quarter Total Income of Rs 1364.01 Crore. Company reported net profit after tax of Rs -405.34 Crore in latest quarter.
Investment Rationale
Delhivery reported adjusted EBITDA loss of Rs2.17bn for Q1FY23, departing from the positive trend under the same parameter over the past two quarters. The final phase of integration of Spoton impacted Q1FY23 EBITDA by Rs1.96bn. Owing to phased restart of key customer accounts into the newly integrated network, PTL freight volumes for Q1FY23 stood lower at 239,000te vs 279,000te (proforma) in Q1FY22. Gross margin declined sharply QoQ from 28% to 17%. Revenue from express parcel services grew 34% YoY to Rs10.5bn in Q1FY23 on the back of robust shipment growth and new client acquisitions while suffering from India exit of Shopee. Delhivery’s B2C-heavy business model has a potential profit pool of Rs63bn in India (by FY26E), in view (excluding potential pickup in the slow PTL segment). Its base case assumes Delhivery to capture ~25% of the profit pool. It downgrades the stock to SELL (from Hold) with an unchanged target price of Rs484, given 20% rally since its listing. Higher share of the profit pool by Delhivery is an upside risk.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Jun-2022, while FIIs owned 8.02 per cent, DIIs 6.83 per cent.
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