Global brokerage firm HSBC has reiterated its 'hold' rating on Delhivery Ltd., while raising its discounted cash flow (DCF)‑based target price to Rs 500 from Rs 470, citing higher long‑term volume growth assumptions. The current market price is Rs 470.5 and the increase in target price indicates a 6% upside on the stock.
The brokerage said Delhivery remains a highly competitive player in India's logistics market, but believes that a phase of slower though above‑market growth warrants patience for a more attractive entry point. With Ecom Express now integrated, HSBC expects investor focus to shift towards the trajectory of parcel volume growth and margin improvement.
HSBC said that Delhivery's share price has remained resilient amid Middle East conflict‑led concerns around fuel inflation and demand destruction. The stock is up 6% since Feb 27, outperforming Shadowfax, which gained 3%, and the Sensex, which declined 5% over the same period.
Fuel costs account for 9–10% of Delhivery's transportation revenues and are typically passed through with a one‑month lag. HSBC said that during the 2020–22 fuel price surge, Delhivery successfully mitigated cost pressures by shifting towards trailer operations, which now handle about 72% of volumes and reduce fuel consumption by over 25% compared with smaller trucks.
Despite fuel spikes, service EBITDA margins have improved sharply, aided by scale benefits and operating efficiencies, said the brokerage firm.
Delhivery Ltd. Share Price Today
Delhivery Ltd. Share Price Today
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Shares of Delhivery Ltd., rose over 1% on Friday with the stock trading Rs 470.90 intraday. The scrip rose as much as 1.09% to Rs 470.90 apiece intraday on Friday at 11:35 a.m. This compares to a 0.96% rise in the NSE Nifty 50 Index.
It has risen 90.83% in the last 12 months and 17.64% year-to-date. Total traded volume so far in the day stood at 2.09 times its 30-day average. The relative strength index was at 60.13.
Out of 23 analysts tracking the company, 19 maintain a 'buy' rating, three maintain a "hold", and one maintains a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 525.95 implies an upside of 11.7%.
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