Posted on April 8, 2025, by Niftynews
Delhivery stock experienced a significant drop of 6.28% on April 8, 2025, closing at Rs 251.60 on the Bombay Stock Exchange (BSE), down from its previous close of Rs 268.45. The stock saw a sharp decline from the day’s high of Rs 275.75, marking a 10% drop from its peak. This led to a reduction in the company’s market capitalization, which now stands at Rs 18,758 crore.
High Trading Volumes and Technical Indicators for Delhivery Stock
In addition to the price drop, Delhivery stock saw an increase in trading volumes, with 27.4 million shares exchanged on the BSE and NSE. This volume is more than three times the weekly average and seven times the monthly average, according to Trendlyne data. This surge in trading activity indicates that the market is paying close attention to the stock, especially amidst the broader market recovery.
Technically, Delhivery stock is trading below its 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages, signaling downward momentum. Additionally, the Relative Strength Index (RSI) of the stock stands at 54.5, suggesting it is neither overbought nor oversold. The Money Flow Index (MFI), however, has crossed the 70-mark, indicating that the stock might be mildly overbought and could experience a short-term rebound if market conditions improve.
What’s Behind the Decline in Delhivery Stock?
Several factors have contributed to the recent slump in Delhivery stock. Despite the announcement of the Ecom Express acquisition, which is expected to provide a boost by combining forces in the 3PL B2C express market, there are concerns about Meesho’s increasing insourcing of logistics. This development could potentially hurt Delhivery’s growth in the short term, leading to cautious sentiment in the market.
Delhivery’s acquisition of Ecom Express for Rs 14 billion is aimed at strengthening its position in the market. The combined entity is expected to command 55-60% of the market share, outpacing immediate competitors by three times. However, analysts remain wary of the impact Meesho’s strategy could have on the logistics firm’s future volume trajectory.
Analysts’ Outlook on Delhivery Stock
Despite the recent drop, some analysts are still bullish on Delhivery stock. Emkay Global, for instance, has set a target price of Rs 400 for the stock. The brokerage believes the combined entity from the Ecom Express acquisition will help Delhivery dominate the 3PL B2C express market in the long run.
Although near-term headwinds due to Meesho’s strategy persist, Emkay maintains a BUY recommendation on Delhivery stock, citing strong growth potential. They also noted that despite a drop in EBITDA in Q3 FY25, the overall financial performance remains robust, with a 114% rise in profit and an 8.4% increase in revenue.
Company Fundamentals and Earnings Overview for Delhivery Stock
In the third quarter of FY25, Delhivery reported a 114% rise in profit to Rs 25 crore, compared to Rs 11.7 crore in Q3 FY24. However, its EBITDA dropped 6.2%, from Rs 109.2 crore to Rs 102.4 crore. This drop in EBITDA is a concern for some investors but is overshadowed by the positive revenue growth.
Delhivery’s diversified logistics services, which include express parcel delivery, warehousing, supply chain solutions, and freight services, continue to be attractive in a growing e-commerce market. However, with new competition entering the space, Delhivery must continue innovating to maintain its market position.
What’s Next for Delhivery Stock?
Looking ahead, the future of Delhivery stock largely depends on the successful integration of Ecom Express and how the company handles external competition from companies like Meesho. The company’s ability to navigate the logistics industry’s competitive landscape will be crucial for its long-term growth.
The current dip in Delhivery stock might present a buying opportunity for investors who believe in the company’s growth potential. However, caution is advised, as market conditions can change rapidly, and there may be more volatility in the short term. Investors should monitor Delhivery’s performance closely in the coming quarters to assess if the stock can recover and continue to grow.
In conclusion, while Delhivery stock has faced short-term challenges, its strategic acquisitions and strong market presence in logistics offer long-term promise. The stock’s recovery will depend on the company’s ability to maintain growth and adapt to industry shifts.
