Shares of logistics services provider Delhivery extended losses for the second straight session amid the equity market hitting record high today. Delhivery stock fell to a record low of Rs 310.1 against the previous close of Rs 323.60 on BSE. Shares of Delhivery are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
With today’s low, the stock has declined 56.22 per cent from its all-time high of Rs 708.45 on BSE. Market cap of Delhivery fell to Rs 22,718 crore.
Total 0.80 lakh shares of the firm changed hands amounting to a turnover of Rs 2.53 crore on BSE. In a month, the stock has fallen 12.39%. With today’s fall, the Delhivery stock has lost 36.32 per cent or Rs 176.9 from its IPO price of Rs 487. The IPO of Delhivery was open from May 11 to May 13.
The company offered its shares in a price band of Rs 462 to Rs 487. The Delhivery share listed on May 24, 2022 at a premium of 1.68% at Rs 495.20 on NSE. On BSE, the stock listed at Rs 493, 1.23 per cent higher to the IPO price.
In the second quarter of the current fiscal, Delhivery reported a loss of Rs 254 crore against a loss of Rs 635 crore clocked in the year-ago period. The logistics firm’s loss also decreased sequentially as it stood at Rs 399 crore in the June 2022 quarter.
Revenue in Q2 came in at Rs 1,796 crore, 22 percent higher against Rs 1,497.7 crore reported in the corresponding quarter of the last fiscal. Q2 revenue numbers rose marginally quarter-on-quarter as well from Rs 1,745.7 crore in Q1FY23.
JM Financial has a neutral stance on Delhivery. The brokerage said Delhivery managed a strong and successful IPO in May 2022 when most internet stocks were struggling to raise funds. A big driver of the successful listing, JM Financial said, was that the company showcased pro forma profitability for FY22 while also growing revenue by 63 per cent YoY.
However, SpotOn has not been an easy integration and has resulted in the company losing adjusted Ebitda of Rs 342 crore in H1FY23 against Rs 7.2 crore profit in FY22. With the company claiming that integration is now complete and gross margin on incremental revenue of 50 per cent, JM Financial expects Delhivery to become profitable by the end of the current fiscal year.
“However, we anticipate margins to improve only with simultaneous improvement in scale as the company can benefit from amortising the fixed costs,” it added.