Delhivery Share Price Rises For Second Day On Ecom Express Acquisition Boost
Delhivery informed exchanges April first week that it will acquire Ecom Express for a cash consideration for Rs 1,400 crore.
.png?auto=format%2Ccompress&fmt=avif&mode=crop&ar=16%3A9&q=60)
Delhivery Ltd's share price rose for a second consecutive session on Tuesday as it revealed more details about Ecom Express's acquisition. The logistics company informed exchanges in the first week of April that it will acquire Ecom Express for a cash consideration of Rs 1,400 crore.
In the latest exchange filing, Delhivery has provided details on commonly raised queries regarding any acquisition. The move is expected to enhance the logistics company's scale and profitability. The acquisition will be retained at Delhivery's high incremental gross margins.
In the first nine months of the financial year ending March 2025, Ecom Express has recorded Rs 398 crore, as per the profit and loss statement shared by Delhivery with exchanges. Ecom Express's revenue stands at Rs 1,912 crore during the same period.
As far as new customer acquisition is concerned, Delhivery said that its system will be able to smoothly enroute volumes from Ecom Express without any additional technology advancements, the exchange filing said.
Delhivery's share price rose as much as 3.10% to Rs 254.6 apiece, the highest level since April 8. It was trading 2.81% higher at Rs 253.85 apiece as of 11:13 a.m., as compared to a 2.05% advance in the NSE Nifty 50 index.
The stock declined 44.29% in 12 months and 26.62% on a year-to-date basis. Total traded volume so far in the day stood at 1.5 times its 30-day average. The relative strength index was at 46.69.
Out of 24 analysts tracking the company, 19 maintain a 'buy' rating, and five recommend a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 55.9%.
