Delhivery’s Q2 performance in surface express was robust. Regaining lost wallet share during Spoton’s integration along with yield improvement in the PTL business underpins the management’s focus on improving profitability, analysts said.
SoftBank is reportedly looking to offload part stake in Delhivery, a logistics service provider, for around $150 million on Friday, a media report quoting multiple industry sources suggested. As per the Moneycontrol report, SoftBank was seeking to sell about 4 per cent stake in Delhivery via the block deal route with the deal size of around $150 million. Kotak Mahindra Capital was said to be the advisor to the proposed transaction. The Japanese firm had in October sold over Rs 1,000 crore worth shares of Zomato Ltd.
Analysts noted that despite seasonality, Delhivery’s Q2 performance in surface express was robust. Regaining lost wallet share during Spoton’s integration along with yield improvement in the PTL business underpins the management’s focus on improving profitability together with gaining market share, Emkay Global said in a November 5 note.
“With a bulk of the network expansion investment for FY24 completed and pickup in demand imminent in Q3 (B2C monthly volume run rate up over 15% vs. Q2 average), H2 should see decent operating leverage for the company to turn EBITDA positive. Strong cash position lends support to future expansion plans while keeping any aggressive competition at bay,” it said. The brokerage has a BUY rating on the stock with a target of Rs 490.