Blue Dart Express - Price Hikes To Support Margins: Motilal Oswal

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..Motilal Oswal Report.Blue Dart Express Ltd. has announced price hikes ranging from 9% to 12%, effective January 2025. This would help cover several inflationary costs and maintain its margin profile. With improved demand, Blue Dart expects the price hike to be comfortably passed on to its customers. As the festival season kicks in, capacity utilisation of its new aircraft is anticipated to pick up. As the aircraft reach optimal utilisation levels, efficiency will improve, leading to higher margins. New routes, such as Guwahati, are starting to ramp up and should pick up pace in the coming quarters.Blue Dart continues to expand in the surface express segment, which forms 30% of its total revenues. The surface express segment is likely to be a key growth driver for Blue Dart as it is expected to grow faster than the air segment.Volumes are projected to improve with the onset of the festive season as the new aircraft are stabilising and routes like Guwahati have been added to the network. Ebitda margin has started to expand as capacity utilisation has improved and Blue Dart has shifted some volumes from the third-party cargo to its own aircraft. We reiterate our Buy rating with a revised target price of Rs 9,900 (based on 21times FY27E Enterprise value/Ebitda)..Click on the attachment to read the full report:.TCS Q2 Results Review - BSNL Ramp-Up Continues To Fuel Growth: Motilal Oswal.DISCLAIMERThis 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.

Blue Dart Express - Price Hikes To Support Margins: Motilal Oswal

The company's volumes are improving as the new aircraft are stabilizing and routes like Guwahati have been added to the network, says the brokerage.

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