DELHIVERY - Investment Analysis: Buy Signal or Bull Trap?
Last Updated Time : 20 Dec 25, 07:05 am
Back to Investment ListInvestment Rating: 2.2
| Stock Code | DELHIVERY | Market Cap | 30,346 Cr. | Current Price | 406 ₹ | High / Low | 490 ₹ |
| Stock P/E | 109 | Book Value | 135 ₹ | Dividend Yield | 0.00 % | ROCE | 2.71 % |
| ROE | 1.78 % | Face Value | 1.00 ₹ | DMA 50 | 428 ₹ | DMA 200 | 410 ₹ |
| Chg in FII Hold | -1.30 % | Chg in DII Hold | 2.45 % | PAT Qtr | 61.2 Cr. | PAT Prev Qtr | 114 Cr. |
| RSI | 40.6 | MACD | -9.40 | Volume | 11,20,674 | Avg Vol 1Wk | 12,53,720 |
| Low price | 237 ₹ | High price | 490 ₹ | PEG Ratio | 3.64 | Debt to equity | 0.15 |
| 52w Index | 66.7 % | Qtr Profit Var | 216 % | EPS | 2.64 ₹ | Industry PE | 24.5 |
📊 Analysis: DELHIVERY shows weak fundamentals for long-term compounding. ROE at 1.78% and ROCE at 2.71% are far below ideal thresholds. Valuation is highly stretched with P/E at 109 compared to industry average of 24.5, while PEG ratio at 3.64 indicates poor growth-adjusted valuation. Dividend yield is 0%, offering no shareholder returns. Debt-to-equity at 0.15 is manageable, but EPS at 2.64 ₹ is very low relative to market cap. Technicals show RSI at 40.6 (weak momentum), MACD negative (-9.40), and price hovering near 200 DMA (410 ₹), suggesting bearish sentiment. Quarterly PAT dropped from 114 Cr. to 61.2 Cr., raising concerns about earnings stability despite a high variance figure.
💡 Entry Zone: Safer entry would be in the 280–320 ₹ range, aligning with valuation comfort and support levels. Current price (406 ₹) is above fair entry zone, making risk-reward unattractive at present.
📈 Exit Strategy: If already holding, consider tactical exit near 430–450 ₹ resistance. Long-term holding is not favorable unless ROE improves above 12–15% and earnings growth stabilizes. Suggested holding period: short-term (6–12 months) rather than multi-year compounding.
Positive
- 📌 Debt-to-equity at 0.15 indicates manageable leverage
- 📌 DII holding increased (+2.45%)
- 📌 PAT variance (+216%) shows operational volatility but potential upside in certain quarters
Limitation
- ⚠️ Extremely high valuation: P/E 109 vs industry 24.5
- ⚠️ Weak ROE (1.78%) and ROCE (2.71%) below compounding thresholds
- ⚠️ PEG ratio at 3.64 highlights poor growth-adjusted valuation
- ⚠️ Dividend yield at 0% offers no shareholder returns
Company Negative News
- ❌ PAT dropped from 114 Cr. to 61.2 Cr.
- ❌ FII holding decreased (-1.30%)
Company Positive News
- ✅ DII holding increased (+2.45%)
- ✅ Manageable debt levels provide financial stability
Industry
- 🏦 Industry PE at 24.5, sector moderately valued
- 🏦 Logistics sector has long-term demand potential but faces profitability and margin challenges
Conclusion
🔎 DELHIVERY is not a strong candidate for long-term investment due to weak ROE/ROCE and stretched valuations. Entry should be avoided at current levels; wait for correction near 280–320 ₹. Existing holders may exit near resistance zones or hold short-term only. Long-term compounding potential is limited unless profitability metrics improve significantly.
Would you like me to extend this into a peer benchmarking overlay comparing DELHIVERY against logistics peers like Blue Dart, TCI Express, and Mahindra Logistics to highlight relative valuation comfort zones?
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