DELHIVERY - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.8

📊 Core Financials

Earnings & Profitability: EPS of ₹2.07 and PAT of ₹114 Cr (up 47.3% QoQ) show improving profitability, though margins remain thin. ROCE at 2.71% and ROE at 1.78% are weak, indicating underutilized capital.

Debt Profile: Debt-to-equity of 0.14 — low leverage, which supports financial flexibility.

Cash Flow: Not explicitly stated, but improving PAT and low debt suggest positive operating cash flows. However, sustained profitability is still evolving.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 153 Extremely overvalued vs. industry PE (26.7)

P/B Ratio ~3.67 Reasonable premium over book value

PEG Ratio 5.10 Overvalued relative to growth

Dividend Yield 0.00% No income play — reinvestment-focused

Valuation is stretched, and PEG ratio suggests growth may not justify current pricing.

🚚 Business Model & Competitive Advantage

Delhivery Ltd. is India’s largest fully integrated logistics and supply chain services company. Key strengths include

End-to-end tech-enabled logistics platform across express parcel, freight, and warehousing

Strong presence in Tier 1 and Tier 2 cities with expanding B2B and D2C capabilities

Proprietary data science and automation tools for route optimization and cost efficiency

The company has shown consistent revenue growth and is transitioning toward profitability. Analysts forecast EPS to rise to ₹1.39 by Q1 FY26, with revenue expected to reach ₹28.2B

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📈 Technical & Sentiment Indicators

RSI: 65.0 – Approaching overbought zone.

MACD: 6.93 – Bullish momentum.

Volume Surge – Above weekly average, indicating strong interest.

DMA 50 & 200: Price is above both, confirming medium-term strength.

Analyst consensus shows a 1-year price target range of ₹350 to ₹600, with a median of ₹486

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💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹440–₹460, near DMA 50 and below current price.

Current Price ₹484: Slightly above ideal entry — consider partial accumulation or wait for a dip.

🕰️ Long-Term Holding

Hold or Accumulate on Dips: Strong logistics infrastructure and tech moat make Delhivery a promising long-term play, especially as e-commerce and D2C models scale.

Watch Profitability & Institutional Sentiment: FII inflow (+0.96%) is encouraging, but high valuation and low ROE warrant caution.

You can explore Delhivery’s analyst forecast and EPS trajectory

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or review Trendlyne’s brokerage consensus

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for deeper insights. Let me know if you'd like a peer comparison with Blue Dart or Ecom Express.

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in.tradingview.com

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trendlyne.com

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