BLUEDART - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | BLUEDART | Market Cap | 13,124 Cr. | Current Price | 5,532 ₹ | High / Low | 7,225 ₹ |
| Stock P/E | 45.7 | Book Value | 713 ₹ | Dividend Yield | 0.45 % | ROCE | 18.6 % |
| ROE | 15.0 % | Face Value | 10.0 ₹ | DMA 50 | 5,522 ₹ | DMA 200 | 5,958 ₹ |
| Chg in FII Hold | -0.90 % | Chg in DII Hold | 0.49 % | PAT Qtr | 108 Cr. | PAT Prev Qtr | 79.5 Cr. |
| RSI | 55.2 | MACD | -18.9 | Volume | 30,908 | Avg Vol 1Wk | 23,101 |
| Low price | 5,190 ₹ | High price | 7,225 ₹ | PEG Ratio | -2.72 | Debt to equity | 0.28 |
| 52w Index | 16.8 % | Qtr Profit Var | 35.9 % | EPS | 105 ₹ | Industry PE | 23.3 |
💹 Financials: Blue Dart Express shows decent profitability with ROE at 15.0% and ROCE at 18.6%, reflecting moderate capital efficiency. Debt-to-equity at 0.28 indicates manageable leverage. Quarterly PAT improved from 79.5 Cr. to 108 Cr., showing a 35.9% growth, highlighting earnings momentum. EPS at 105 ₹ supports strong earnings visibility.
📊 Valuation: The stock trades at a P/E of 45.7, significantly higher than the industry average of 23.3, suggesting overvaluation. The P/B ratio is ~7.8 (5532/713), which is steep. PEG ratio of -2.72 indicates distorted valuation metrics due to inconsistent growth. Dividend yield at 0.45% is modest, offering limited income return.
🏢 Business Model & Advantage: Blue Dart operates in the logistics and courier services sector, with strong brand recognition and pan-India presence. Its competitive advantage lies in its extensive distribution network, integration with DHL, and leadership in express delivery services. Rising e-commerce demand continues to support long-term growth.
📈 Overall Health: Financially stable with moderate debt and consistent profitability, but valuations are stretched. RSI at 55.2 suggests neutral momentum, while MACD at -18.9 indicates bearish sentiment in the short term. Long-term fundamentals remain intact, supported by logistics sector expansion and e-commerce growth.
🎯 Entry Zone: Attractive entry around 5,200–5,400 ₹ range, near support levels. Current price of 5,532 ₹ is slightly above fair value. Long-term investors may accumulate gradually, but caution is advised due to premium valuation multiples.
Positive
- Strong ROCE (18.6%) and ROE (15.0%) indicate efficient capital use.
- Quarterly PAT growth of 35.9% highlights earnings momentum.
- Extensive distribution network and DHL integration provide competitive edge.
- DII holdings increased by 0.49%, reflecting domestic institutional support.
Limitation
- High P/E (45.7) compared to industry average (23.3).
- High P/B ratio (~7.8) suggests stretched valuation.
- PEG ratio negative (-2.72) highlights distorted valuation metrics.
- Dividend yield at 0.45% offers limited income return.
Company Negative News
- FII holdings decreased by -0.90%, showing reduced foreign investor confidence.
- Short-term technical indicators (MACD negative) suggest weak momentum.
Company Positive News
- Quarterly PAT rose from 79.5 Cr. to 108 Cr., showing strong earnings growth.
- DII holdings increased by 0.49%, reflecting domestic institutional support.
- Strong brand presence and DHL partnership enhance market positioning.
Industry
- Logistics and courier industry is expanding due to rising e-commerce demand.
- Industry P/E at 23.3 indicates Blue Dart trades at a premium valuation compared to peers.
Conclusion
Blue Dart remains a fundamentally strong logistics company with solid profitability and sectoral tailwinds. However, high valuations and modest dividend yield limit upside potential. Entry around 5,200–5,400 ₹ is advisable for long-term investors, with cautious accumulation recommended given stretched multiples.