Shares of logistics firm Delhivery continued to decline for the sixth consecutive session on Wednesday to hit their record low level. The stock plunged 5.32 per cent to hit an all-time low of Rs 317. However, the scrip recovered some lost ground to eventually settle 2.73 per cent lower at Rs 325.65. Technical analysts said the momentum is weak and stock could fall further in the coming days. However, a breach of Rs 340 level — on a closing basis — could lead to a short-term bounce, they said.
A total of 59 lakh shares changed hands today, amounting to a turnover of Rs 1.92 crore on BSE. The company’s market capitalisation (m-cap) stood at Rs 23,671.00 crore.
The stock has plunged 13.02 per cent in the last six consecutive sessions. On a year-to-date (YTD) basis, Delhivery has slumped 39.52 per cent.
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Considering today’s closing, the Delhivery stock has lost 33.13 per cent from its initial public offering (IPO) price of Rs 487.
Technical view on Delhivery
Amol Athawale, Deputy Vice-President – Technical Research, Kotak Securities, said, “In this quarter so far the stock corrected nearly 45 per cent. The stock consistently faced selling pressure at higher levels. Lower top formation on intraday charts and correction continuation formation on daily charts indicated further weakness from the current levels. We are of the view that the short-term texture of the stock is weak but oversold. For now, as long as the stock is trading below Rs 365 or 20-day SMA (Simple Moving Average), the weak wave is likely to continue and below the same, it could slip to Rs 300-280 levels. On the flip side, a quick pullback rally is possible if it succeeds to trade above Rs 340, and above that, it could move up to Rs 350-360.”
A R Ramachandran from Tips2trades said, “Anchor investors exiting the stock despite decent Q2 FY23 results. Forecasts of lower economic growth in the coming year have led to a consistently sharp fall in Delhivery stock price. Even though the Delhivery stock price is technically very oversold, investors should wait for a daily close above 339 to buy for targets between Rs 380 and Rs 405 in the near term. Next lower support would be at Rs 297.”
Lower economic growth projections could dampen the demand, which may hit the logistics sector hard. Some global rating agencies have reduced India’s economic growth forecasts for the current fiscal.
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Delhivery narrowed its losses to Rs 254 crore in the second quarter of the current fiscal against a loss of Rs 635 crore clocked in the year-ago period.
Revenue in Q2 came in at Rs 1,796 crore, 22 per cent higher compared to Rs 1,497.7 crore in the corresponding quarter of the last fiscal.
Meanwhile, Indian equity benchmarks settled on a higher note today, led by gains in state-owned lenders.
