Analysts Eye Resistance at ₹400 as Delhivery Turns Profitable
In a significant milestone for the logistics tech company, Delhivery has posted its first-ever full-year net profit for FY25. The news sent the company’s shares soaring 12% on Monday, with investors optimistic about the company’s future prospects. However, analysts are divided on the stock’s potential, with some seeing continued upside to ₹410, while others flag overvaluation and declining promoter holding as red flags.
Delhivery’s journey to profitability has been a long and arduous one. Founded in 2011, the company had been burning cash for years, struggling to scale its operations and achieve profitability. However, under the leadership of its CEO, Mohit Tandon, the company has made significant strides in recent years, investing heavily in technology and infrastructure to improve its operational efficiency.
The company’s efforts have paid off, with Delhivery reporting a net profit of ₹1,300 crore for FY25, a significant turnaround from its net loss of ₹1,400 crore in FY24. The company’s revenue also saw a significant jump, growing 34% year-on-year to ₹9,100 crore.
The news has sent Delhivery’s stock surging, with investors optimistic about the company’s future prospects. The stock has risen 12% on Monday, with some analysts predicting further upside to ₹410. However, others are more cautious, flagging concerns over the company’s valuation and declining promoter holding.
“Delhivery’s turnaround is a significant milestone for the company, but we remain cautious on the stock’s valuation,” said a leading analyst at a prominent brokerage firm. “The company’s revenue growth is impressive, but its valuation is still high compared to its peers. We see resistance at ₹400 and recommend investors to book profits.”
Another analyst took a more bullish view, predicting that Delhivery’s stock would continue to rise. “Delhivery’s profitability is a significant positive for the company, and its valuation is reasonable compared to its peers,” said the analyst. “We see upside potential to ₹410, driven by the company’s strong revenue growth and improving profitability.”
Despite the differing views, one thing is clear: Delhivery’s profitability is a significant milestone for the company. The company’s ability to scale its operations and achieve profitability is a testament to its leadership and operational efficiency.
In conclusion, Delhivery’s stock has surged 12% on Monday after the company posted its first-ever full-year net profit for FY25. While analysts are divided on the stock’s potential, one thing is clear: the company’s profitability is a significant milestone for the company. As investors weigh the pros and cons, one thing is certain: Delhivery’s future prospects are looking brighter than ever.
