DELHIVERY - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 2.7

📊 Core Financials

• Revenue & Profitability: PAT declined to 61.2 Cr. from 114 Cr., showing earnings pressure despite YoY profit variation of +216%.
• Margins: ROE at 1.78% and ROCE at 2.71% reflect weak efficiency and profitability.
• Debt Ratios: Debt-to-equity at 0.15 — moderate leverage, manageable but not debt-free.
• Cash Flows: Dividend yield at 0.00% — no direct shareholder returns, reinvestment focus.

💹 Valuation Indicators

• P/E Ratio: 109 vs Industry PE of 24.5 — extremely overvalued compared to peers.
• P/B Ratio: Current Price 406 ₹ / Book Value 135 ₹ ≈ 3.0, moderately expensive.
• PEG Ratio: 3.64 — indicates poor growth-adjusted valuation.
• Intrinsic Value: Current valuation stretched; fundamentals do not justify premium pricing.

🏢 Business Model & Competitive Advantage

• Operates in logistics and supply chain solutions, leveraging technology-driven delivery networks.
• Competitive advantage lies in scale, technology integration, and diversified logistics services.
• DII holdings increased (+2.45%), showing strong domestic institutional support, though FII reduced (-1.30%).

📈 Technical & Entry Zone

• DMA 50: 428 ₹ | DMA 200: 410 ₹ — stock trading near long-term support.
• RSI: 40.6 — approaching oversold territory.
• MACD: -9.40 — bearish momentum persists.
• Entry Zone: Attractive near 350–370 ₹ for accumulation.
• Long-Term Holding: Risky unless profitability improves and valuations normalize.

✅ Positive

• Strong YoY profit variation (+216%).
• DII holdings increased (+2.45%), reflecting domestic institutional confidence.
• Technology-driven logistics model with diversified services.

⚠️ Limitation

• Extremely high P/E ratio (109) compared to industry average.
• Weak ROE (1.78%) and ROCE (2.71%).
• No dividend yield, limiting shareholder returns.

📉 Company Negative News

• PAT declined from 114 Cr. to 61.2 Cr. sequentially.
• FII holdings reduced (-1.30%), showing weaker foreign investor sentiment.

📈 Company Positive News

• YoY profit variation of +216% indicates operational recovery.
• DII holdings increased (+2.45%), reflecting strong domestic institutional support.

🏭 Industry

• Industry PE at 24.5 — sector trades at moderate valuations.
• Logistics industry benefits from e-commerce growth and supply chain modernization but faces margin pressures.

🔎 Conclusion

DELHIVERY is financially stable with moderate debt but suffers from weak profitability and extremely high valuations. Entry is advisable only near 350–370 ₹, with cautious long-term holding. Improvement in earnings and return ratios will be critical for sustainable upside.