Blue Dart - Margins To Improve With Better Capacity Utilisation: 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.The recently acquired two 737-800 aircraft have been integrated into the existing aircraft network (Blue Dart Express Ltd. realized revenue from these new aircraft only during the last 10 days of Q1 FY24). Starting from Q2 FY24, we expect capacity utilisation to improve significantly. As a result, we anticipate improved margin performance from the second quarter onwards. Ebitda margins faced challenges as aviation turbine fuel prices did not correct in line with Brent prices. However, over the last several months, the disparity between Brent and ATF prices has reduced, which should support margins. Blue Dart enjoys a ~60% market share in the organised Air Express segment (as of FY22) and has been gaining market share in the Surface Express segment (~30% of total revenue), which is expected to grow at twice the rate of air express industry. The company continues to focus aggressively on the Surface express segment, which should support volume growth in the near to medium term. With the upcoming festive season, improved utilisation of new aircraft and expansion of branch network, volumes are expected to register a compound annual growth rate of 13% over FY23-25. We expect Ebitda margins to gradually improve to 13% in FY25 with better capacity utilisation and reducing disparity between Brent and ATF prices. We reiterate our 'Buy' rating with a target price of Rs 7,840 (premised on 20 times FY25E enterprise value/Ebitda)..Click on the attachment to read the full report:.Tata Technologies - Rapidly Growing ER&D Company, Specialising In Auto, Aero Verticals: Anand Rathi.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 - Margins To Improve With Better Capacity Utilisation: Motilal Oswal

Utilization set to improve in Blue Dart’s newly added aircraft.

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