"Delhivery Shares: Shocking 12% Decline Exposed!"

Delhivery Share Price Declines 12% Post Q4 Results

Delhivery Ltd's shares dropped 12% today (May 21) after the company released its Q4 results. Despite this, most brokerages maintain a positive outlook on the stock after the earnings report, which showed a loss of ₹68.5 crore for the quarter ending March 31, 2024 - a 57% decrease from the previous year's loss of ₹159 crore during the same period. Additionally, the company announced the resignation of its Executive Director and Chief Business Officer (CBO), Sandeep Kumar Barasia, with July 1 being his last working day.

Market Capitalization Falls Below ₹30,000 Crore

The total market capitalization dropped below ₹30,000 crore today due to the decline in stock price.

Brokerages' Views on Delhivery Share Price

Kotak Institutional Equities upgraded the stock to 'buy', highlighting solid results in various metrics, such as resilient margins in Express Parcel and healthy growth with improving margins. They also noted a peak in capex and an improvement in working capital, which strengthens the case for cash break-even by FY2026. Meanwhile, Prabhudas Lilladher changed its stance to a 'buy' rating, citing strong growth in the PTL network and continuous improvement in asset utilization. They expect ongoing volume growth in the segment for FY25E and set a target of ₹530 based on DCF.

Nuvama Institutional Equities maintained a 'hold' rating on the stock, emphasizing the need for profitability to drive an upward trajectory in the stock price. They adjusted their estimates slightly for FY25E/26E and revised their DCF-based target price to ₹463.