DELHIVERY - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 2.9

🚚 Fundamental Analysis: Delhivery Ltd. (DELHIVERY)

Delhivery is a tech-driven logistics company with strong growth momentum but weak profitability and expensive valuation. While it’s gaining traction in operational metrics, its long-term investment appeal is limited unless capital efficiency improves significantly.

Metric Value Implication

P/E Ratio 188 Extremely overvalued vs. industry PE of 28.8 — priced for perfection

PEG Ratio 6.43 Very high — growth is expensive and unsustainable

ROCE / ROE 2.72% / 1.80% Very weak — poor capital efficiency

Dividend Yield 0.00% No dividends — not suitable for income investors

Debt-to-Equity 0.15 Low — financially stable

EPS ₹2.17 Weak earnings base

Qtr Profit Var +235% Strong momentum — recent turnaround

FII/DII Holding Change +0.96% / -0.44% Mixed sentiment; FII buying is a positive

📉 Technical Analysis

Current Price: ₹422

DMA 50 / DMA 200: ₹387 / ₹354 → Trading above both; bullish trend

RSI: 58.5 → Neutral zone; mild strength

MACD: +14.6 → Bullish crossover; short-term momentum

Volume: In line with average — steady interest

💰 Ideal Entry Price Zone

₹370–₹390

This range aligns with DMA support and offers a better margin of safety

Avoid entry above ₹430 unless ROCE improves and PEG normalizes

📈 Long-Term Investment Outlook

Strengths

Tech-enabled logistics — scalable business model

Low debt — strong balance sheet

Recent profit surge — signs of operational efficiency

FII accumulation — institutional confidence

Risks

P/E > 180 — extremely expensive

PEG > 6 — unsustainable valuation

ROCE and ROE < 3% — poor long-term compounding potential

No dividends — not ideal for conservative investors

Delhivery is a high-risk, high-growth stock, suitable only for aggressive investors who believe in the long-term digitization of logistics and are comfortable with volatility.

🏁 Exit Strategy / Holding Period

If you already hold DELHIVERY

Holding Period: 1–2 years with close monitoring of profitability and margins

Exit Strategy

Consider trimming near ₹440–₹450 (recent high)

Reassess if ROCE doesn’t improve above 8% or PEG remains above 3

Hold only if earnings growth sustains and valuation cools

Would you like a peer comparison with Blue Dart, TCI Express, or Mahindra Logistics to explore more stable or dividend-paying logistics plays?

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