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Equirus’ price target on Delhivery implies a potential upside of 18% from current levels, although that target is below the company’s IPO price of ₹487.
Shares of Delhivery have been underperformers among the new age companies that listed in the second half of 2021 and the first half of 2022.
Having listed in May 2022, Delhivery has not managed to cross its IPO price of ₹487 till date, and is still 20% below those levels, while stocks like Zomato have more than tripled from those levels.
Equirus expects Delhivery’s revenue to grow at a Compounded Annual Growth Rate (CAGR) of 14% over financial year 2024-2027, with EBITDA margin expanding to 8.6% for the same period, driven by operating leverage and better B2B Part Truck Load (PTL) margins.
The brokerage also expects Delhivery’s premium valuations to sustain given its rapid growth, market share gains from established B2B players and the company’s transition to profitability.
Shares of Delhivery are currently trading at a price-to-earnings multiple of 142 times, 69 times and 39 times over financial year 2025, 2026 and 2027 respectively.
On an Enterprise Value-to-EBITDA front, Delhivery trades at 57 times, 35 times and 22 times respectively over financial year 2025, 2026 and 2027 respectively.
Out of the 24 analysts that have coverage on Delhivery, 19 of them have a “buy” rating on the stock, while five others have a “hold” rating.
Shares of Delhivery ended little changed on Monday at ₹391.9. The stock has recovered 20% from its recent lows of ₹325.
