Delhivery Ltd’s fundamental analysis highlights key financial metrics, including a total market capitalization of ₹26,608.96 crore, a debt-to-equity ratio of 0.13, and a return on equity (ROE) of -2.72%. These numbers offer valuable insights into the company’s financial health and market valuation.
Table of Contents
Overview Of Logistics Sector
The logistics sector encompasses the planning, implementation, and management of the movement and storage of goods, services, and information from origin to consumption. It plays a critical role in enabling global trade and ensuring supply chain efficiency.
This industry includes various activities such as transportation, warehousing, inventory management, and packaging. With advancements in technology, logistics has become more streamlined, leveraging tools like automation, data analytics, and artificial intelligence to enhance speed and reduce costs.
Financial Analysis of Delhivery India Ltd
- Sales Growth:
Sales increased from ₹7,225 crore in March 2023 to ₹8,142 crore in March 2024, reflecting a growth of approximately 12.7%. This highlights the company’s continued expansion in operations and demand for its logistics services. - Expense Trends:
Expenses rose from ₹7,677 crore in March 2023 to ₹8,015 crore in March 2024, a smaller increase of 4.4%, indicating improved cost control relative to revenue growth. - Operating Profit & Margins:
Operating profit improved significantly from a loss of ₹-452 crore in March 2023 to a profit of ₹127 crore in March 2024. Correspondingly, the Operating Profit Margin (OPM) turned positive at 2% in March 2024 from -6% in March 2023, signaling better operational efficiency. - Profitability Indicators:
Net profit losses narrowed from ₹-1,008 crore in March 2023 to ₹-249 crore in March 2024, indicating improved financial health. EPS improved from ₹-13.83 in 2023 to ₹-3.38 in 2024, showing progress toward profitability. - Key Financial Metrics:
Other income increased sharply from ₹319 crore in March 2023 to ₹439 crore in March 2024, offsetting some of the operational challenges. Depreciation costs reduced from ₹831 crore in 2023 to ₹722 crore in 2024, while interest expenses remained consistent at ₹89 crore.
Metrics | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
Sales | 3647 | 6882 | 7225 | 8142 |
Expenses | 3769 | 7357 | 7677 | 8015 |
Operating Profit | -123 | -475 | -452 | 127 |
OPM % | -3% | -7% | -6% | 2% |
Other Income | 150 | 156 | 319 | 439 |
Interest | 89 | 100 | 89 | 89 |
Depreciation | 355 | 611 | 831 | 722 |
Profit before tax | -416 | -1029 | -1053 | -244 |
Tax % | 0% | -2% | -4% | 2% |
Net Profit | -416 | -1011 | -1008 | -249 |
EPS in Rs | -2492.60 | -15.75 | -13.83 | -3.38 |
Dividend Payout % | 0% | 0% | 0% | 0% |
* Consolidated Figures in Rs. Crores
Delhivery India Limited Company Metrics
Delhivery India Limited’s market capitalization is ₹25,362.36 crore. The close price of its stock is ₹341.8, and the P/E ratio is -101.78. The company has a Return on Capital Employed (ROCE) of -1.54% and a quarterly EPS of ₹0.14. Its Price to Book (PB) ratio is 2.77, with a Debt-to-Equity ratio of 0.13. The Return on Equity (ROE) is -2.72%. Over six months, the stock has returned -14.42%, with a 1-month return of 5.44%.
Market Capitalization:
Market Capitalization represents the total market value of Delhivery India Limited’s outstanding shares, amounting to ₹25,362.36 crore.
P/E Ratio:
The Price-to-Earnings (P/E) ratio of -101.78 indicates that Delhivery India Limited is currently operating at a loss.
ROCE (Return on Capital Employed):
The ROCE of -1.54% reflects the company’s negative efficiency in generating profits from its total capital employed.
EPS (Earnings Per Share):
The quarterly EPS of ₹0.14 indicates the portion of the company’s profit allocated to each outstanding share.
PB Ratio:
The Price-to-Book (PB) ratio of 2.77 shows how the market values the company compared to its book value.
Debt-to-Equity Ratio:
Delhivery India Limited has a Debt-to-Equity ratio of 0.13, indicating a low level of debt relative to its equity.
Return on Equity (ROE):
The ROE of -2.72% measures the negative profitability of Delhivery India Limited, showing a loss generated with the money shareholders have invested.
Stock Returns:
Over the last six months, Delhivery India Limited’s stock has returned -14.42% and its 1-month return is 5.44%.
Net Profit Margin:
The 5-year average net profit margin of -10.09% reflects the company’s consistent operational losses over the period.
Delhivery Stock Performance
Delhivery Ltd’s stock has experienced a -19.0% return on investment over the past year, indicating a decline in value.
Period | Return on Investment (%) |
1 Year | -19.0 % |
Example: If an investor had invested ₹1,000 in Delhivery Ltd stock a year ago, it would now be worth approximately ₹810, reflecting the 19% decrease in value.
Delhivery Shareholding Pattern
Metrics | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 |
FIIs | 62.71% | 63.63% | 61.16% | 55.02% |
DIIs | 17.02% | 19.62% | 22.03% | 28.56% |
Public | 20.27% | 16.73% | 16.81% | 16.41% |
No. of Shareholders | 94011 | 92984 | 128985 | 139715 |
Delhivery Partnerships and Acquisitions
Delhivery, a leading logistics and supply chain services company in India, has strategically expanded its capabilities through various partnerships and acquisitions:
- Spoton Logistics Acquisition (August 2021): Delhivery acquired Bengaluru-based Spoton Logistics to strengthen its B2B operations, enhancing its express parcel delivery services across the country.
- FedEx Collaboration (July 2021): FedEx Express invested in Delhivery, acquiring a minority stake, and entered into a long-term commercial agreement to leverage combined strengths for enhanced logistics solutions in India.
- Algorhythm Tech Acquisition (December 2022): Delhivery acquired Pune-based Algorhythm Tech Pvt. Ltd., a supply chain software firm, to bolster its integrated supply chain solutions offering.
- Vinculum Stake Acquisition (June 2023): Delhivery acquired a stake in Vinculum, a SaaS company specializing in e-commerce and multi-channel retail, to strengthen its fulfillment solutions for brands.
Delhivery Peer comparison
The below table shows the peer compassion for Delhivery stock.
Metrics | Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
1. | Container Corpn. | 767.95 | 46790.76 | 36.10 | 10.93 | 13.93 | -26.82 | -7.74 | 1.50 |
2. | Delhivery | 349.60 | 25968.58 | 825.45 | -2.94 | -1.73 | -10.92 | -9.77 | 0.00 |
3. | Zinka Logistics | 501.65 | 8853.06 | – | -59.12 | -32.33 | – | – | 0.00 |
4. | Transport Corp. | 1084.75 | 8453.09 | 22.18 | 19.05 | 19.92 | 18.35 | 32.81 | 0.88 |
5. | TVS Supply | 173.19 | 7639.44 | 257.22 | -7.39 | 4.74 | -4.57 | -12.97 | 0.00 |
6. | Allcargo Logist. | 51.21 | 5032.83 | 145.81 | 4.94 | 3.32 | -14.64 | -33.28 | 2.15 |
7. | VRL Logistics | 517.70 | 4528.24 | 53.62 | 9.00 | 10.70 | -8.79 | -29.94 | 0.97 |
Future of Delhivery
Delhivery’s future lies in capitalizing on India’s growing e-commerce sector and expanding its logistics network to tier-2 and tier-3 cities. Its focus on technology-driven solutions, cost efficiency, and strategic partnerships positions it for sustainable growth. However, achieving consistent profitability and navigating competition will be critical for long-term success in the evolving logistics landscape.
How To Invest In Delhivery Share?
To invest in Delhivery shares, start by opening a Demat and trading account with a reputable stock broker like Alice Blue. Research the stock’s performance and use the broker’s platform to place your orders.
- Choose a Stock Broker: Select a reliable stock broker like Alice Blue that offers low fees, a user-friendly platform, and good customer service for seamless stock market transactions.
- Open a Demat and Trading Account: Open a Demat account for holding shares electronically and a trading account for buying and selling shares.
- Fund Your Account: Deposit money into your trading account via online banking, UPI, or other payment methods to prepare for your investment.
- Research Delhivery Stock: Analyze Delhivery’s performance, financials, and market trends to make an informed investment decision before placing a buy order.
- Place a Buy Order: Use your broker’s platform to search for Delhivery shares, specify the quantity, and place a market or limit order to purchase.
Delhivery – FAQs
The market capitalization of Delhivery Ltd is ₹26,608.96 crore. The market cap represents the total market value of a company’s outstanding shares and reflects its overall valuation in the stock market.
Delhivery is a prominent player in India’s logistics industry, especially in e-commerce logistics. While it holds a strong position due to its technology-driven approach and extensive network, it faces stiff competition from players like Blue Dart and Gati. Its leadership depends on continued innovation, market share expansion, and profitability improvements in a highly competitive sector.
Delhivery has expanded its capabilities through strategic acquisitions, including Spoton Logistics to enhance B2B services and Primaseller for inventory management solutions. These acquisitions strengthen Delhivery’s logistics network, technology, and service portfolio, enabling it to address diverse market needs and solidify its position in India’s logistics and supply chain sector.
Delhivery is a logistics and supply chain solutions provider offering e-commerce logistics, transportation, warehousing, freight, and fulfillment services. It leverages technology to optimize operations, catering to businesses of all sizes across India. Delhivery connects sellers, buyers, and businesses with efficient delivery solutions, supporting the growing demand in e-commerce and traditional logistics markets.
Delhivery does not have a single owner but is collectively owned by its shareholders, including major institutional investors like FIIs, DIIs, and public shareholders. The company was co-founded by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati, who played pivotal roles in its establishment and growth as a leading logistics firm in India.
Delhivery’s shareholding shows a shift in ownership dynamics, with FIIs reducing their stake from 62.71% in Dec 2023 to 55.02% in Sep 2024, while DIIs increased from 17.02% to 28.56% during the same period. Public shareholding decreased slightly to 16.41%, but the number of shareholders rose significantly, reflecting growing retail interest in the company.
Delhivery operates in the logistics and supply chain management industry, specializing in e-commerce logistics, transportation, warehousing, and fulfillment services. It plays a pivotal role in connecting businesses and consumers by enabling efficient movement of goods across India. With a technology-driven approach, Delhivery addresses the dynamic needs of online retail and traditional businesses.
Delhivery’s order book growth for the year reflects its expanding presence in India’s logistics market, driven by increasing e-commerce demand and new customer acquisitions. While the company reported growth in volumes, sustaining momentum depends on operational efficiency and market share gains. Investors should monitor quarterly updates to gauge consistent growth and financial improvements in its order book.
To invest in Delhivery shares, open a trading and Demat account with a reliable broker like Alice Blue. Use the broker’s platform to search for Delhivery Ltd’s stock, analyze its performance, and place a buy order. Ensure thorough research on the company’s fundamentals and market trends before investing to make informed decisions.
Delhivery’s valuation appears stretched, with a negative P/E ratio indicating losses, and a high Price-to-Book ratio of 2.77 compared to industry standards. Despite growth potential in India’s logistics sector, weak profitability metrics suggest it may be overvalued. Investors should assess operational improvements and financial health before concluding if its market price aligns with intrinsic value.
Delhivery’s future hinges on its ability to capitalize on India’s growing e-commerce sector, optimize logistics networks, and improve profitability. With advancements in technology and expansion into tier-2 and tier-3 cities, it has significant growth potential. However, consistent losses and competitive pressures demand strategic cost management and innovation to ensure long-term sustainability and investor confidence.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.