Delhivery Ltd Shares Hit 52-Week Low Despite Doubling Profit in Q3

Delhivery shares hit the 52-week low on February 10 and fell to INR 296.50 despite registering strong earnings in the third quarter. This correction has resulted in trading their shares below the RS 300 mark for the first time in the past two years. Previously, it hit the intraday low of RS 298.15 on February 13, 2023. This decline surprised many as the company’s consolidated profit went up 114% to nearly RS 25 crore in Q3, while their revenue rose 8% to RS 2,379 crore. According to a report from the NDTV Profit, the reason for the decline in shares is their price targets getting cut by the brokerages who opt for a bearish stance even after such strong results.

For example, Emkayhas gone for the buy rating on the shares of this logistics company, but they reduced the PT by 50 RS to INR 425. On the other hand, Goldman Sachs hasa neutral rating, but they reduced Delhivery's share price to INR 370. That’s not all; Prabhudas Lilladher maintained a hold rating with a price of RS 340 as a target. All of them have pressured the company’s shares, resulting in its 52-week low after record profits. The company has also changed its leadership roles by appointing Vani Venkatesh as its chief business officer on February 28. Vani has previous experience working as a former executive for Airtel Company.

Also, they have appointed Namita Thapar and Sameer Mehta as the non-executive independent directors on the board. Thapar is an executive director of Emcure Pharmaceuticals, while Mehta is the CEO and co-founder of the Boat brand. These executives are expected to revamp the various operations of the company. If we talk about the past 12 months, the company’s stock has declined nearly 33%.