Share of Delhivery slipped over 2 percent on Monday, days after the new-age logistics and supply chain management company reported a net loss of Rs 195.6 crore for the December quarter of FY23 against a net loss of Rs 126.5 crore in the same period last year. Revenue for the quarter was down 8.6 percent at Rs 1,823.8 crore whereas EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss was recorded at Rs 73.3 crore year-on-year compared to an EBITDA profit of Rs 54.1 crore.
The stock has been 55 percent off its highs. Here is what brokerage houses think of the stock:
| Brokerage house | Call | Target price |
| Jefferies | Buy | Rs 570 per share |
| CLSA | Buy | Raised to Rs 489 per share |
| Morgan Stanley | Overweight | Cut to Rs 370 per share |
Morgan Stanley said that the high operating leverage of the company in addition to cost rationalisation measures resulted in better-than-expected adjusted EBITDA.
CLSA said Delhivery continued sequential improvement in profitability and added that management of the company was confident in a pickup in express parcels and PTL volume in 2023. It also added that incremental gross margin will remain elevated in the near term.
Another brokerage firm Jefferies said that the Q3 EBITDA loss of Delhivery was lower than estimates as gross profit was better than expected and the company kept other expenses lower. It, however, added that the management had exhibited confidence in reducing losses further.
The stock of Delhivery was down 2.19 percent or 5.45 points to Rs 310.75 at 10:05 am.
First Published: Feb 13, 2023 10:52 AM IST
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