Shares of Delhivery Ltd will remain in concentrate on Thursday early morning as the personal equity company Carlyle is most likely to offer a 2.53 percent stake in the e-commerce logistics business today at Rs 385.50 a piece for Rs 709.50 crore or $86 million. As per reports, Carlyle, through an entity called CA Swift Investments, would use 18.4 million shares of Delhivery and would totally leave Delhivery. The rate is at 0.9 percent discount rate to Wednesday’s closing rate of Rs 388.95. Citigroup is apparently selected as the sole broker for the deal.
Delhivery is an integrated logistics business offering express parcel shipment, part- and full-truck load freight, warehousing, supply chain services and cross-border services. It is the biggest third-party express parcel shipment provider in India, with 40 percent share of the 3PL market and 20 pre cent general market share. Delhivery has an overall logistics facilities of 18 million square feet reach covering 18,000 pin-codes (96 percent) throughout India.
Recently the business hosted its Analyst Day, post which Macquarie said incorporated operations might drive cost competitiveness for Delhivery, as it recommended a target of Rs 460 on the stock. Kotak Institutional Equities said something still not really clear is the course in the near term to 10 percent changed Ebitda margin (or high-teens service Ebitda margin). It has factored in 7 percent Ebitda margin and start of complimentary capital (FCF) from FY2026E. This brokerage has a target of Rs 410 on the stock.
“We see Delhivery to have actually a separated positioning in a commoditised market however still require additional proof of its capability to equate business design supremacy into complimentary capital and for this reason keep ‘HOLD’ ranking. As the business still continues to sustain heavy capital investment into tractor-trailers, automation, IT and supply chain, there might be a hold-up in the business offering strong return on capital,” JM Financial said on the stock previously this month.
Delhivery just recently reported widening of bottom line at Rs 159 crore for the March quarter. It reported a bottom line of Rs 120 crore in the matching quarter in 2015.
The company’s income from operations decreased 10 percent to Rs 1,860 crore in the March quarter compared to Rs 2,072 crore in the year-ago quarter.
