Delhivery bulk deals: CA Swift Investments sells Rs 607 cr shares, Morgan Stanley Asia a buyer

CA Swift Investments on Monday dumped half of its holding in Delhivery at an average price of Rs  330.02 apiece, NSE bulk deal data suggested. CA Swift Investments sold 1,84,04,607 (1.84 crore) shares of Delhivery amounting to Rs 607.38 crore. This is against 3,68,09,214 (3.68 crore) shares or 5.07 per cent stake it held in Delhivery as of September 30.                     

In another bulk deal, Morgan Stanley Asia (Singapore) bought 48,54,607 (48.52 lakh) Delhivery shares in a bulk deal on Monday at an average price of Rs 330 apiece.  The shares bought were worth Rs 160 crore.

The scrip fell 1.91 per cent to settle the day at Rs 344 on NSE.  This was 30 per cent lower than the issue price of Rs 487, at which the stock was allotted in the May IPO. 

Post its IPO, Delhivery had a sharp 30 per cent run-up led by two drivers: high ecommerce growth prospects and Delhivery already being profitable in H2FY22.

“As both these have been challenged in H1FY23, the stock was hit violently. While FY23E may still see 15-20 per cent express parcel growth, Delhivery’s story relies heavily on e-commerce growth staying at 20 per cent or above for a decade or so,” Nuvama Institutional Equities said in a November 14 note.

The stock hit a record high of Rs 708.45 on July 21, before taking a beating.

The Delhivery management has hinted that while Shoppe shutting shop in India has hurt Delhivery, growth could still be 15 per cent-plus. Besides, Delhivery reverting to losses in H1FY23 was a shock, and directionally it should again revert to profitability, the management felt.

“However, we feel this time around, investors may bank less on hope and wait for actual profit delivery before re-rating the stock,” Nuvama said in the note.

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