Shares of Delhivery Ltd tumbled in today's trade after the company had a large block deal take place pre-market open on Wednesday, December 6. At 9:36 am, the scrip was trading 0.36% lower at ₹392.10 apiece on the NSE.
About 10.84 lakh shares exchanged hands at ₹393.50 per share in a block deal window. Buyers and sellers in the transaction are currently unknown.
Delhivery shares have slipped nearly 3% in the last one month. On a year-to-date basis, the scrip has gained 18% and has risen 13.40% in the last one year.
In the July-September quarter, Delhivery regained lost wallet share and also reported yield improvement in the part truck load (PTL) business. As per brokerage firm Emkay Global, the quarterly results underpinned the management’s focus on improving profitability and gaining market share.
Emkay Global has assigned a 'Buy' rating on the counter with a target price of ₹490 per share. In a note, the brokerage said the network expansion investment for FY24 has been completed and that a pickup in demand is imminent in the December quarter.
"H2 should see decent operating leverage for the company to turn EBITDA positive. Strong cash position lends support to future expansion plans while keeping any aggressive competition at bay," Emkay said.
Foreign brokerage CLSA has reduced its rating on the stock to ₹493 from ₹550, as it cut its sales estimates by 3.2% for FY24.
CLSA believes the consensus is underestimating the operating leverage in the business as revenue scales up, and the brokerage is significantly higher on its Ebitda margin assumptions for FY26 than consensus.
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