Multibagger air courier stock can cross Rs 8,000 mark in a year; here’s why

Shares of Blue Dart Express Ltd rose over 7% today after financial services firm Motilal Oswal upgraded its rating to buy from neutral and assigned a target price of Rs 8,040 to the stock.  The target price amounts to a 19.23% upside for the stock, which has already gained 257% in the last three years. Blue Dart Express gained 7.39% to Rs 7242.05 against the previous close of Rs 6743.30 on BSE. Market cap of the firm rose to Rs 17,155 crore.   

Blue Dart Express opened higher at Rs 6905 on BSE. In the afternoon session, total 5651 shares of the firm changed hands amounting to a turnover of Rs 3.99 crore. The stock hit a 52-week high of Rs 9639.45 on October 4, 2023 and a 52-week low of Rs 5633 on May 8, 2023.    

In terms of technicals, the relative strength index (RSI) of Blue Dart Express stands at 80, signaling it's trading neither in the strongly overbought zone. Blue Dart Express stock has a one-year beta of 0.2, indicating very low volatility during the period. Blue Dart Express stock is trading higher than the 5day, 20 day, 50 day, 100 day and 200 day moving averages.  

 Motilal Oswal said, “We expect Blue Dart Express’ EBITDA margin to rise to 13-14% from 2HFY24 onward from the current level of 10-11%. With an improved outlook and a 30% correction in the stock price from the highs, we believe the stock is now attractively valued. We upgrade our rating to BUY from Neutral, with a target price of Rs 8,040 (premised on 20x FY25E EV/EBITDA).” 

Blue Dart Express is South Asia's premier express air, integrated transportation and distribution company, which offers secure and reliable delivery of consignments to over 55,400 plus locations in India.