On Monday, people will be paying attention to Delhivery’s shares. The logistics company just announced a 114% increase in its net profit for the December quarter, earning Rs 25 crore compared to Rs 12 crore last year. This marks the third profitable quarter in a row for Delhivery!
The company’s revenue from operations reached Rs 2,378 crore, an 8% increase from Rs 2,194 crore in the same quarter last year. When looking at the previous quarter (Q2FY25), its profit rose by a remarkable 145%, jumping from Rs 10 crore to Rs 25 crore.
In a challenging environment, Delhivery stated they are on a path of profitable growth. Their Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) decreased slightly to Rs 102 crore in this quarter, down from Rs 109 crore last year.
Looking at specific areas:
– Express Parcel revenue grew by 3%, making Rs 1,488 crore this quarter.
– Part Truckload revenue increased by 22% to Rs 462 crore.
– Supply Chain Services earned Rs 222 crore, a 29% increase thanks to new and existing clients.
– Truckload service revenue was up by 5% to Rs 160 crore.
– Cross Border services improved by 12% to Rs 43 crore.
Sahil Barua, the CEO, noted that despite the difficulties in the industry, December was a great month for them. Their growing revenue and strong network are helping them become more competitive.
Target Price for Delhivery Shares: According to Trendlyne data, the average target price for Delhivery shares is Rs 449, which means there’s a potential upside of 42% from current prices. Analysts suggest this stock is a ‘Strong Buy’.
Delhivery’s Market Performance: Last Friday, Delhivery’s shares closed at Rs 317, down by 1.55% on the BSE, while the Sensex decreased by 0.25%. Over the past six months, the stock has dropped by 23% and by 33% over the last year. Currently, the company is valued at Rs 23,552 crore.
(Disclaimer: The opinions and recommendations from experts are their views and do not reflect those of Niftystat.)
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