India's Blue Dart Express rises on bets of margin expansion, volume boost

Blue Dart Express

21/06/2023 06:36

** Shares of  logistics services provider Blue Dart Express
 BLDT.NS  rise as much as 4.5% to 7,045 rupees, hitting the
highest level since Jan. 24
    ** Analysts at Motilal Oswal say BLDT can see improvement in
 margins in coming quarters on lower aviation turbine fuel (ATF)
prices, 
    ** BLDT got two new aircraft to cater to tier-II, tier-III
cities, which could boost volumes - Motilal; upgrades stock to
"buy" from "neutral," raises TP to 8,040 rupees from 6,190
rupees
    ** Expects EBITDA margin to expand to 13-14% from 2HFY24 vs
10-11% current level; Also pegs 12% volume CAGR during FY23-25,
supported by strong growth in the road and air segments
    ** BLDT's relative strength index above 70, indicating it is
overbought
    ** More than 59,000 shares change hands by 10:32 a.m. IST,
3.9x 30-day avg of 15,197 shares
    ** Avg rating of 7 analysts close to equivalent of "buy,"
median PT is 7,732 rupees - Refinitiv data
    ** Stock down 13% this year, as of last close


 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))