Delhivery share price today tanks on block deal buzz after rallying for 7 straight trading days

About 1.22 crore shares of Delhivery, i.e., 1.7% of equity, worth ₹410 crore changed hands at an average price of ₹338 per share on Wednesday, as per a report by CNBC-TV18. Mint could not independently verify the update.

Delhivery reported a bigger loss at ₹195.7 crore for the third quarter ended December 2022 (Q3 FY23) as compared to a loss of ₹127 crore in the yea-ago quarter. Its revenue also declined about 9% to ₹1,823 crore as against ₹2,019 crore year-on-year (YoY).

“Q3 EBITDA loss was lower than expectations as gross profit was better and other expenses lower. Management exhibited confidence on reducing losses further. We believe current price factors less than 10% express parcel growth in the next 3-5 years vs 30%+ levels seen in the past. We believe B2B (Spoton), operating leverage and low e-commerce penetration driven growth are being underestimated,” global brokerage Jefferies had said in earnings review note.

Dominant in B2C, Delhivery is making a mark in B2B through its Spoton acquisition, say analysts who believe that the company should break even in FY25E-26E with management’s focus on profitability in an industry with a strong growth tailwind.

“Delhivery’s Q3FY23 results were a mixed bag. With SpotOn’s integration, margin improvement met expectations, but express parcel shipment volume growth was sluggish at 6% QoQ/flat YoY. That said, PTL volumes are showing momentum since Jan-23 and the midmile optimisation should aid margin expansion. Growth moderation in Express currently and the FY24E uncertainty are the key variables,” said brokerage Nuvama Research in a note earlier this month.

Delhivery is fully-integrated supply chain services company in the domestic and international space. The stock is down about 38% since its market debut in May 2022.