Hold BlueDart Express; target of Rs 2100: ICICI Direct

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ICICI Direct's research report on BlueDart Express

BlueDart reported Q1FY21 results, which saw consolidated revenues declining 47% YoY to Rs 416 crore (mainly due to focus on operations to support only essential supplies). Further, while utilisation remained weak in Q1 (essential supplies via air freight and some pickup in the B2C segment), July showed logistics operations normalising (upwards of 80% compared to July last year). The company also slashed its courier charges by 25% across retail customers and small businesses in Q1, which further led to losses on the operational front. Demand for movement of the cargo via air continues to see upside due to the prevalent partial lockdown conditions in the economy (that has led to higher surface freight prices and delayed delivery of parcels).

Outlook

Hence, we change our recommendation from BUY to HOLD with a revised target price of Rs 2100.

For all recommendations report, click here

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