Shares of logistics services provider Delhivery hit their all-time low today, plunging nearly 19 per cent amid a broader market rally. Delhivery stock fell 18.79 per cent intraday to Rs 382.75 against the previous close of Rs 471.30. With today’s low, the stock has declined 46 per cent from its all-time high of Rs 708.45 on BSE. Market cap of Delhivery fell to Rs 29,043 crore. Total 26.19 lakh shares of the firm changed hands amounting to a turnover of Rs 106.33 crore on BSE.
The stock has crashed 31.66 per cent in the last two sessions due to a disappointing Q2 business update by the firm.
Delhivery said, “Market sentiment in Q2 continued to remain broadly unchanged from Q1. Consumer discretionary spending remained muted due to continuing high levels of inflation, with average user spends and total active shoppers remaining flat or lower during the ongoing festive season, as per the industry reports. Industrial output also remained weak in the first 2 months of the quarter. In spite of the challenging market conditions, our market position remains strong owing to our structural cost advantages, network size and investments in capacity.”
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The company has logged a QoQ fall in volumes in its supply chain services and truckload verticals owing to seasonality in its customers’ businesses. However, these verticals have reported substantial double-digit growth YoY.
Pavitraa Shetty from Tips2trades said, “Weaker demand forecast by the Delhivery management in terms of shipments due to high inflation and lower growth rates has led to its stock price slumping way below its listing price since the past two sessions. Even though Delhivery stock price is technically very oversold, investors should wait for a daily close above Rs 457 to buy for targets of Rs 533 and Rs 580 in the near term. Next lower support would be at Rs 333.”
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In Q1 of the current fiscal, the logistics firm reported widening of its net loss to Rs 399 crore against net loss of Rs 130 crore in the year-ago period.
Total income rose 32% to Rs 1,795 crore in Q1FY23 as compared to Rs 1,364 crore in Q1FY22. On May 24, 2022, the shares of logistics services provider listed at a premium of 1.68 per cent against the IPO issue price. The company offered its shares in a price band of Rs 462 to Rs 487. The stock listed at Rs 495.20 on NSE. On BSE, the stock listed at Rs 493, 1.23 per cent higher to the IPO price.
Delhivery is engaged in providing a full range of logistics services, including delivery of express parcel and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software. Delhivery is the largest and fastest-growing fully integrated logistics services player in India by revenue as of FY21.
