India's Delhivery to post industry-leading growth, margin improvement, Kotak says

Delhivery

05/03/2024 07:52

** Kotak upgrades logistics firm Delhivery  DELH.NS  to
"buy," from "add;" raises PT to 570 rupees
    ** Stock up 1.3%, with vols around ~0.4x the 30-day avg
    ** While other players bleed as they grow volumes, DELH has
improved earnings, will outperform industry over next 5 years
and at pace of 1.2x for next 2 years - Kotak
    ** Brokerage believes DELH will hugely benefit as more
ecommerce players join Amazon in outsourcing express delivery
    ** Adds peers have limited defence against co's
"unrelenting" pricing pressure
    ** Sees revenue growing 20% CAGR from FY24-32 and higher
market share
    ** Avg rating of 21 analysts is equivalent to 'buy' with 11
of them rating it a 'strong buy' - LSEG
        ** Median PT is 550 rupees - LSEG data
  
    ** Over last 12 months, stock up 38.2%; YTD, it is up 19.5%

 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))