Blue Dart Express - Expansion Of Fleet, Branch Network Bodes Well: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Blue Dart Express Ltd. holds a significant market share of ~60% in the organised Air Express segment. This places the company in a favorable position to capitalise on the various business prospects available within the Express logistics industry. The surface segment accounts for ~35% of Blue Dart's total revenue. This segment is experiencing robust growth, with double-digit expansion, surpassing the high single-digit growth observed in the Air segment.Blue Dart provides the e-commerce industry with highly efficient solutions, which include enabling digital payments through 16 plus different digital wallets on their courier handheld machines. Additionally, the company accepts credit and debit cards, offering convenient payment choices for their customers..Valuation and viewWith lower aviation turbine fuel prices and a price hike in January 2023, Blue Dart’s margin is likely to stabilise in the 13-14% range. Blue Dart is actively pursuing the goal of boosting the Surface Express segment's contribution, which currently stands at 35%. The company anticipates that the Surface Express sector will experience twice the growth rate of the Air Express segment, primarily driven by the cost difference between the two. In response to the robust demand growth particularly from tier II and III cities/towns, Blue Dart has expanded its fleet in FY23 by adding two aircraft.We expect Blue Dart to clock a compound annual growth rate of 14%/21%/28% in revenue/Ebitda/profit after tax over FY23-25. We reiterate our 'Buy' rating with a target price of Rs 8,250 (20 times FY25E enterprise value/Ebitda)..Click on the attachment to read the full report:.Netweb Technologies IPO - The Leading Player In High-End Computing Solutions: Geojit.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Blue Dart Express - Expansion Of Fleet, Branch Network Bodes Well: Motilal Oswal

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