Delhivery shares slip 10% from day's high, log high volumes; what's next?

Shares of Delhivery Ltd cracked 10% from day's high on Tuesday amid a recovery in the broader market. The stock of the logistics services firm also saw large volumes with 27.4 million shares traded on both BSE and NSE today. This is over three times the weekly volume of 7.8 million and seven times the monthly volume of 3.9 million shares, Trendlyne data show. 

Delhivery stock surged to a high of Rs 275.75 in early deals today. However, the stock slipped over 10% from the high to hit an intraday low of Rs 247.10 in the afternoon session. 

At 1:37 pm, Delhivery stock slipped 6.28% to Rs 251.60 against the previous close of Rs 268.45 on BSE. Market cap of the firm fell to Rs 18,758 crore. The stock touched a 52-week high of Rs 478 on April 12, 2024. 

A total of 9.62 lakh shares of the firm changed hands amounting to a turnover of Rs 24.50 lakh on BSE. Emkay Global has assigned a price target of Rs 400 on the stock. 

"Delhivery announced the acquisition of Ecom Express – the second largest 3PL B2C operator, for a cash consideration of Rs 14 billion, valuing the company at 0.6 times EV/sales (on FY24 numbers). The combined entity would command 55-60% market share of the 3PL B2C express market, dwarfing the immediate peer by 3x," said the brokerage. 

"However, concerns around Meesho increasing insourcing of logistics would continue to cast a shadow on the volume trajectory in the near term. We retain BUY on Delhivery while cutting our DCF-based TP by ~6% to Rs 400 (Dec-25E)," added Emkay. 

In terms of technicals, the relative strength index (RSI) of Delhivery stock stands at 54.5, signaling it's trading neither in the oversold nor in the overbought zone. The stock has a beta of 0.9, indicating average volatility in a year. Its money flow index (MFI) has crossed the 70 mark to 70.3 which indicates the stock is mildly overbought and is likley to rebound. 

Shares of Delhivery are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day  and 200 day moving averages. 

In the third quarter of the previous fiscal, profit rose 114% to Rs 25 crore against a profit of Rs 11.7 crore in the corresponding quarter of the previous fiscal. Revenue from operations rose 8.4% to Rs 2378.3 crore in Q3FY25 against Rs 2194.4 crore revenue in Q3FY24. 

EBITDA slipped 6.2% to Rs 102.4 crore in the last quarter against Rs 109.2 cr in Q3 FY24.

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.