.png?downsize=773:435 "Delhivery Q1 Results Review — PL Capital Downgrades To 'Add' Amid Sharp Appreciation In Stock Price")
While Delhivery's top-line was a miss by 6.8% due to weak performance from supply chain services and cross border businesses, B2C shipment volume growth was back in double-digits after five quarters. Operating performance was better than estimate with Ebitda margin of 6.5% (brokerage estimate: 5.5%) while PAT was aided by higher other income of Rs 1,299 million (our estimate: Rs 1,059 million) due to MTM gains.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
PL Capital Report
We increase our FY26E/FY27E Ebitda estimates by 3.7%/2.0% amid strong performance in Q1 FY26 but downgrade Delhivery Ltd. to Accumulate (earlier Buy) with a target price of Rs 466 given 34% appreciation in stock price since our last update report.
While Delhivery's top-line was a miss by 6.8% due to weak performance from supply chain services and cross border businesses, B2C shipment volume growth was back in double-digits after five quarters. Operating performance was better than our estimate with Ebitda margin of 6.5% (our estimate: 5.5%) while PAT was aided by higher other income of Rs 1,299 million (our estimate: Rs 1,059 million) due to MTM gains.
As retention volumes at E-com express are trending higher at ~55-65% versus earlier expectation of ~30%; near term earnings pressure arising from acquisition related integration cost of Rs 3,000 million will be low.
Improvement in the service Ebitda margin profile of PTL/SCM division to 13%/15% and 5%/6% in FY26E/FY27E respectively is expected to provide additional earnings cushion.
We expect sales CAGR of 13% over the next two years with Ebitda margin of 7.2%/9.2% in FY26E/FY27E and arrive at Delhivery's per share value of Rs 405 (40x FY27E Ebitda; no change in target multiple).
We value Ecom express separately at Rs 61 per share and arrive at a blended target price of Rs 466. Downgrade to Accumulate amid sharp appreciation in stock price.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
