Brokerage firm HSBC, in its latest note, raised its price target on the logistics services provider by 6.3%.
HSBC has maintained its “hold” rating on the Delhivery stock but has raised its price target to ₹500 per share from the previous ₹470 apiece, indicating an upside of 6.2% from its previous close.
The brokerage said that Delhivery’s share price has remained resilient despite the West Asia conflict-led concerns on fuel inflation and demand destruction.
India’s pump prices are yet to rise, and Delhivery has shown previously that such spikes in energy prices can be mitigated, as per HSBC.
Delhivery’s near-term demand continues to remain robust, HSBC said, adding that it has raised the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) by 2%, on higher fourth quarter volumes.
On another note, Nexus Ventures recently sold 1.6% stake in Delhivery at ₹442 per share. At the end of the third quarter, it held 4.48% stake in the firm, as per data available on the stock exchanges.
ICICI Prudential Mutual Fund, Edelweiss Mutual Fund, Nippon India Mutual Fund and SBI Mutual Fund were among the buyers.
Last month, brokerage firm UBS in its note said headwinds for Delhivery were behind and the focus is now on profitable growth.
Of the 23 analysts who have coverage on the Delhivery stock, 19 have a ‘buy’ rating, three have a ‘hold’ rating and one has a ‘sell’ rating.
Shares of Delhivery are trading 0.3% higher at ₹471.3. The stock is back near its IPO price of ₹487, having nearly doubled from its 52-week low of ₹242. The stock has gained 14% so far in April, making it the best month the stock has had so far since May last year.
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