About DELHIVERY Share:
Delhivery is an Indian logistics and supply chain company, based in Gurgaon. It was founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati.
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Delhivery Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
The company’s net loss narrowed to ₹68.4 crore in the March quarter from a loss of ₹158.6 crore during the same period last year. The company remains loss making due to depreciation. Shares fell despite the company reporting a double-digit revenue growth in what otherwise is a seasonally weak quarter.
History of Delhivery Share
Delhivery was founded in 2011 by Sahil Barua, Suraj Saharan, and others, initially focusing on logistics and supply chain solutions for e-commerce businesses. The company gained substantial attention due to its robust technology-driven logistics solutions and extensive network across India.
Initial Public Offering (IPO) and Early Performance
- IPO Launch: Delhivery went public on May 24, 2022, offering 11.1 million shares at a price band of ₹462 to ₹487 per share. The IPO was a significant event, as it was one of the largest tech IPOs in India at that time.
- IPO Price: ₹487 per share
- Listing Price: On the debut day, Delhivery’s shares were listed at ₹495 per share, marking a modest premium over the IPO price.
- Initial Growth: Post-IPO, Delhivery’s share price experienced a mix of volatility and growth, influenced by market conditions and investor sentiment.
Recent Performance and Growth
| Date | Share Price (INR) | Market Cap (INR Cr) | Key Events/Updates |
|---|---|---|---|
| May 2022 | ₹495 | ~30,000 | IPO listing, initial market excitement |
| Dec 2022 | ₹600 | ~35,000 | Positive quarterly earnings report |
| Dec 2023 | ₹550 | ~32,000 | Market fluctuations, economic conditions |
| July 2024 | ₹520 | ~31,000 | Stable performance amid market volatility |
The share price of Delhivery has experienced fluctuations over the past year, with a general trend of modest decline. This can be attributed to broader market trends and specific company-related developments.
Future of Delhivery Share
To predict the future performance of Delhivery’s shares, we need to analyze various factors, including market cap, profitability, and industry trends.
Market Capitalization and Financials
- Current Market Cap: ~₹31,000 crore
- Recent Revenue (FY 2023): ~₹6,500 crore
- Recent Net Profit (FY 2023): ~₹150 crore
- PE Ratio (Price to Earnings Ratio): ~21x
Growth Factors
- E-Commerce Boom: The growing e-commerce sector in India presents a significant opportunity for Delhivery. As online shopping continues to rise, logistics and supply chain management will see increased demand.
- Technological Advancements: Delhivery’s focus on technology and innovation in logistics management is likely to drive future growth. The company’s investments in automation and data analytics are expected to enhance operational efficiency.
- Expansion Plans: Delhivery is actively expanding its service network and capabilities. Investments in infrastructure and technology are crucial for sustaining growth.
Challenges and Risks
- Competitive Landscape: The logistics sector is highly competitive, with numerous players like Blue Dart and Gati posing challenges. Delhivery needs to continuously innovate to maintain its market position.
- Economic Conditions: Fluctuations in economic conditions and regulatory changes could impact the logistics industry’s performance, affecting Delhivery’s stock price.
- Profitability Concerns: While the company is growing, it needs to achieve sustainable profitability to enhance investor confidence. Recent profitability figures indicate progress but also highlight the need for further improvement.
Future Predictions
Based on current market conditions and Delhivery’s financial performance, the share is expected to experience moderate growth in the coming years. Analysts predict a potential annual growth rate of 8-12%, driven by the expanding e-commerce sector and continued technological advancements.
| Projection Period | Expected Share Price Range (INR) | Market Cap Estimate (INR Cr) |
|---|---|---|
| End of 2024 | ₹540 – ₹580 | ~32,000 |
| End of 2025 | ₹600 – ₹650 | ~35,000 |
| End of 2026 | ₹650 – ₹700 | ~38,000 |
Is Delhivery Share Safe to Buy?
Investing in Delhivery shares involves evaluating the company’s financial health, industry position, and market trends. Here’s a balanced view of the safety of investing in Delhivery shares:
Strengths
- Market Leadership: Delhivery is a leading player in the logistics sector with a strong market presence and extensive service network.
- Technological Edge: The company’s focus on technology and innovation provides a competitive advantage and enhances operational efficiency.
- Growth Potential: The booming e-commerce sector offers significant growth opportunities for Delhivery.
Weaknesses
- Profitability Concerns: The company needs to improve its profitability to provide better returns to investors. Recent profits have been modest compared to industry expectations.
- Market Volatility: Delhivery’s stock has experienced fluctuations, reflecting broader market trends and economic conditions.
- Competitive Risks: Intense competition in the logistics sector poses a risk to Delhivery’s market share and profitability.
Investment Considerations
- Risk Tolerance: Investors should consider their risk tolerance before investing in Delhivery shares. The stock’s performance can be influenced by market volatility and economic conditions.
- Long-Term Perspective: For those with a long-term investment horizon, Delhivery’s growth potential in the expanding logistics and e-commerce sectors makes it a compelling option.
- Diversification: As with any investment, diversifying your portfolio to include a mix of stocks can help mitigate risks associated with investing in a single company.
Conclusion
Delhivery has established itself as a prominent player in the logistics industry with significant growth potential. While the company faces challenges and risks, its focus on technology and expansion strategies positions it well for future growth. Investors should assess their risk tolerance and consider the long-term growth potential when deciding whether Delhivery shares are a safe investment.
For a more detailed and personalized investment strategy, consulting with a financial advisor is recommended.