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BLUEDART - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.8

Last Updated Time : 04 May 26, 11:57 am

Fundamental Rating: 3.8

Stock Code BLUEDART Market Cap 12,970 Cr. Current Price 5,466 ₹ High / Low 7,225 ₹
Stock P/E 45.2 Book Value 713 ₹ Dividend Yield 0.46 % ROCE 18.6 %
ROE 15.0 % Face Value 10.0 ₹ DMA 50 5,319 ₹ DMA 200 5,690 ₹
Chg in FII Hold -0.72 % Chg in DII Hold 0.92 % PAT Qtr 108 Cr. PAT Prev Qtr 79.5 Cr.
RSI 59.8 MACD 70.8 Volume 7,190 Avg Vol 1Wk 8,186
Low price 4,683 ₹ High price 7,225 ₹ PEG Ratio -2.68 Debt to equity 0.28
52w Index 30.8 % Qtr Profit Var 35.9 % EPS 105 ₹ Industry PE 23.7

📊 Blue Dart Express Ltd (BLUEDART) shows moderate fundamentals with ROCE at 18.6% and ROE at 15.0%, reflecting decent efficiency. Debt-to-equity at 0.28 is manageable, ensuring financial stability. Quarterly PAT rose from 79.5 Cr. to 108 Cr. (+35.9%), showing earnings momentum. However, valuations are stretched with a P/E of 45.2 vs industry average of 23.7, and a negative PEG ratio (-2.68) highlights poor growth alignment. EPS of 105 ₹ supports profitability, but dividend yield of 0.46% is modest. Overall, Blue Dart’s strong logistics and courier business model provides competitive advantage, though valuation risks remain.

💡 Entry Zone: 5,300–5,400 ₹ (near 50 DMA support).

📈 Long-Term Holding Guidance: Suitable for cautious long-term investors due to strong brand and sector resilience. Accumulate gradually near support zones and hold for 18–24 months, while monitoring valuation compression and earnings growth.

✅ Positive

  • Strong ROCE (18.6%) and ROE (15.0%) highlight efficient operations.
  • Debt-to-equity ratio (0.28) remains manageable.
  • Quarterly PAT growth (+35.9%) shows earnings momentum.
  • DII holdings increased (+0.92%), reflecting domestic institutional support.

⚠️ Limitation

  • High P/E (45.2) vs industry average (23.7).
  • Negative PEG ratio (-2.68) indicates poor growth valuation balance.
  • Dividend yield of 0.46% is modest.
  • Stock trading below 200 DMA (5,690 ₹), showing medium-term weakness.

📉 Company Negative News

  • FII holdings declined (-0.72%), reflecting reduced foreign investor confidence.
  • Valuation concerns due to high P/E and negative PEG ratio.

📈 Company Positive News

  • Quarterly profit surged from 79.5 Cr. to 108 Cr.
  • DII holdings increased (+0.92%), showing domestic institutional support.
  • MACD (70.8) and RSI (59.8) indicate bullish momentum.

🏭 Industry

  • Logistics and courier industry benefits from rising e-commerce demand.
  • Industry P/E at 23.7 highlights moderate valuations compared to Blue Dart’s premium.

🔎 Conclusion

⚖️ Blue Dart is a fundamentally stable company with strong brand presence and earnings growth. However, stretched valuations and negative PEG ratio limit near-term upside. Entry near 5,300–5,400 ₹ offers a favorable risk-reward setup. Best suited for cautious long-term investors willing to accumulate gradually and hold for 18–24 months, with profit booking near 6,800–7,000 ₹ if momentum sustains.

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