Tag Logistics

Delhivery Ltd
Delhivery Shares Drop 10% From Day’s High on Heavy Volumes and Growth Strategy

Business and Industry Overview: 

Delhivery is a prominent Indian company that helps send and deliver goods. It started in 2011 in Gurgaon. At first, it delivered food and flowers in a small area. Then the founders saw a big chance in online shopping. So, they changed the business and started helping online stores. Their first client was Urban Touch, a fashion and beauty store. After that, more online companies joined. The company grew fast. In 2019, SoftBank gave $413 million. In 2021, Fidelity gave $277 million. In 2021, Delhivery also bought Spoton Logistics for ₹1,600 crore. It also bought a drone company in the US named Transition Robotics. In 2022, Delhivery sold its shares to the public in an IPO. It raised ₹5,235 crore and got listed on BSE and NSE. Its value became ₹35,283 crore. In 2024, it became a sponsor of Royal Challengers Bangalore in IPL. Delhivery has more than 85 warehouses, 29 sorting centers, and many delivery points. It works in almost all parts of India. It uses technology to deliver faster. It gives many services like parcel delivery, big goods transport, warehousing, returns, cash collection, and international shipping. Sahil Barua is the CEO. Kapil Bharati is the CTO. Other leaders are Sandeep Barasia, Ajith Pai, and Amit Agarwal. Two founders left in 2021. The biggest investors are SoftBank (11.74%), SBI Funds (9.10%), and Nexus Partners (8.96%). Delivery raised $1.4 billion before its IPO. In 2024, it earned ₹7,241 crore but had a loss of ₹1,007 crore. Even with the loss, the company is growing fast and is one of the top delivery companies in India. 

Latest Stock News: 

Delivery’s share price dropped by over 6% on Tuesday. It had gone down more than 10% from its highest point of ₹275.75 during the day and closed at ₹251.60 on the BSE. This happened even though the overall market improved later in the day. A very large number of shares were traded—about 27.4 million on NSE and BSE combined. This is much more than the usual weekly and monthly average. Experts say the drop happened because many investors sold shares to book profits after the recent price rise. Also, there is some caution in the market because of Delivery’s new deal with Ecom Express. 

Delhivery is buying Ecom Express, which is the second biggest company in the business-to-customer (B2C) delivery space. The deal is for ₹1,400 crore and values Ecom Express at 0.6 times its FY24 sales. With this deal, the combined company may control around 55–60% of the B2C express delivery market. This can help Delhivery grow bigger and save costs. But some analysts, like Emkay Global, also warn that there are risks. For example, some e-commerce companies like Meesho are starting to do deliveries on their own, which may reduce the number of orders Delhivery handles in the future. From a technical point of view, Delhivery’s share price is below all its key moving averages (like 5-day, 10-day, 50-day, etc.), which shows weakness in the stock. The RSI is at 54.5, which means the stock is neither too expensive nor too cheap. But the Money Flow Index (MFI) is at 70.3, suggesting that the stock may be slightly overbought and could see a short-term fall. 

Still, Emkay has kept a ‘Buy’ rating on the stock, even though it has slightly lowered its target price to ₹400. They believe the deal with Ecom Express will add value to the company in the long run. However, they also say that the success of the deal and growth in delivery volumes will be important to watch. 

Potentials: 

Delivery wants to grow more in the future. The company plans to become the number one logistics company in India. It wants to use more technology like robots, drones, and smart tracking to make deliveries faster and better. Delivery also wants to do more B2B business, which means helping other businesses send goods. Right now, it works a lot with online shopping, but it wants to do more than that. It also wants to deliver to more small towns and villages, not just big cities. This will help more people use Delhivery. The company wants to save time and money by using smart systems. Delhivery is also buying another company called Ecom Express. It will pay ₹1,407 crore in full cash. After the deal is complete, Ecom Express will become part of Delhivery. The deal will be finished in six months if all rules and approvals are cleared. Ecom Express started in August 2012. It gives full logistics services using technology. Its office is in Gurugram, Haryana. After buying Ecom, Delhivery will become bigger in sending packages to customers (B2C). The company also wants to work with big brands to help them send goods. The main goal is to grow bigger, work smarter, and give better service to all customers. 

Analyst Insights: 

  • Market capitalisation: ₹ 18,319 Cr. 
  • Current Price: ₹ 246 
  • 52-Week High/Low: ₹ 478 / 237 
  • Stock P/E Ratio: 448 
  • Dividend Yield: 0.00%
  • Return on Capital Employed (ROCE): -1.73% 
  • Return on Equity (ROE): -2.94% 

Delivery Ltd. is showing some improvement. In December 2024, the company made a profit of ₹25 crore. This is a good sign because in earlier quarters, it was making losses. Its revenue is also growing. It increased from ₹1,824 crore in December 2022 to ₹2,378 crore in December 2024. This means the company is expanding its business. Delhivery is also buying Ecom Express for ₹1,407 crore in an all-cash deal. After this deal, Ecom will become a part of Delhivery. Ecom Express is a strong company in tech-based logistics. This deal will help Delhivery improve its services and grow more in the B2C (business-to-customer) area. But there are also some problems. The stock is very expensive. Its price-to-earnings (P/E) ratio is 448, which is much higher than other companies. Its return on equity (ROE) and return on capital employed (ROCE) is -1.73%. This shows the company is not using its money well to make profits. In the last 3 years, its average ROE was -11%, which is very low. Also, the stock price has fallen by 44% in the last year. This shows that investors are not very confident in the stock. Still, Delhivery is the biggest and fastest-growing logistics company in India. It works in more than 220 countries and territories. The company has strong services and good future plans. But the financial numbers are still weak. 

So, this stock has long-term potential. But it is risky right now. It may be better to wait until the company shows better profits and the stock price becomes reasonable. 

Adani Ports Ltd
Adani Ports (APSEZ) Growth Outlook: Tax Payments Surge 25% to ₹58,104 Crore in FY24

Business and Industry Overview

Adani Ports and Special Economic Zone (APSEZ) is India’s largest port operator, managing 25% of the country’s cargo through 13 strategically located ports across seven states. It also operates logistics parks and India’s largest Special Economic Zone (SEZ) in Mundra, spanning 8,000 hectares, which serves as a major hub for industrial development. The company has been expanding rapidly by acquiring new ports and enhancing its infrastructure to efficiently handle container, dry, and liquid cargo. APSEZ has formed partnerships with leading global businesses, strengthening its position in the industry. It aims to become the world’s largest private port operator and India’s most comprehensive transport utility by 2030. To achieve this, it is reducing financial exposure to group firms, divesting non-core assets, and broadening its logistics network, including warehouses, rail, trucking, air freight, and inland waterways. Recognized as a great place to work, APSEZ continues to drive India’s trade growth and contribute significantly to the economy. 

India’s ports are growing fast! In FY24, major ports handled 819 million tonnes of cargo—4.45% more than last year. Smaller, non-major ports also saw an 11% increase. India’s exports also went up to $451 billion from $417 billion in the previous year. The government is making ports bigger and better, allowing 100% foreign investment, which has brought in $1.637 billion so far. Many projects are happening under public-private partnerships (PPP), with 46 major projects worth $4.49 billion in progress. The Sagarmala Programme is working on over 200 modernization projects worth $10.71 billion, aiming to increase port capacity to handle more cargo by 2025. Big projects include a new $9.14 billion mega port in Maharashtra and infrastructure upgrades worth $22 million at Chennai and Kamarajar ports. The government has also set aside $281 million for port development in the 2024-25 budget. 

Private companies like Adani Ports are expanding fast, planning to invest $3 billion to grow their global presence. They’ve also secured a five-year deal at Kolkata Port and got approval for a $5.39 billion expansion of Mundra Port, which already handles 27% of India’s total cargo. India is also focusing on eco-friendly initiatives, aiming for net-zero emissions by 2070 and doubling ship recycling capacity by 2024. New policies and investments in inland waterways are making trade easier and more efficient. Overall, India’s ports are modernizing quickly with better infrastructure, bigger investments, and a strong push toward sustainability, making trade smoother and more efficient. In December 2024, Adani Ports and Special Economic Zone (APSEZ) handled 38.4 million metric tons (MMT) of cargo, which is 8% more than the previous year. This growth was mainly due to a 22% increase in container handling. From April to December 2024, APSEZ managed a total of 332.4 MMT of cargo, 7% more than the same period last year. Container shipments went up by 9%, and liquid and gas cargo rose by 8%. In logistics, the company transported 0.48 million TEUs (containers moved by rail), showing a 9% increase. Meanwhile, freight moved under a special railway investment scheme (GPWIS) grew by 13% to 16.1 MMT. In October 2024, APSEZ reported a net profit of ₹2,445 crore for the second quarter of FY25, which is nearly 40% higher than the previous year. During this period, it handled 111 MMT of cargo, a 10% increase. Over the years, APSEZ has become a leader in the shipping industry by improving efficiency and smartly connecting ports with industrial zones and warehouses. Between FY2016 and FY2021, Indian ports increased their average output per ship by 32%, with APSEZ playing a key role. By making better use of its assets and streamlining operations, APSEZ has strengthened its position in the industry. 

Latest Stock News

Adani Group is planning to invest ₹30,000 crore in Kerala over the next five years. Their main focus will be improving ports and airports and setting up new businesses in logistics and e-commerce. A big part of the investment—₹5,500 crore—will go toward expanding Thiruvananthapuram airport, allowing it to handle 12 million passengers a year instead of the current 4.5 million. Another ₹20,000 crore will be used to develop Vizhinjam port, aiming to make it one of the world’s biggest ports for transferring goods. The company will also expand its cement-handling facilities and build a logistics and e-commerce hub in Kochi. Karan Adani, the Managing Director of Adani Ports and SEZ, shared these plans at the Invest Kerala Global Summit. The Kerala government is organising this event to attract more businesses and investors. The summit focuses on industries like tourism, food processing, healthcare, technology, aerospace, and defence. It includes 28 sessions with business representatives from six countries and over 3,000 attendees. Adani Ports and Special Economic Zone (APSEZ) made a profit of ₹2,520 crore between October and December 2024, which is 14% higher than last year’s ₹2,208 crore. However, this was lower than what experts had predicted (₹2,597 crore – ₹2,711 crore). The company’s revenue for the quarter was ₹7,964 crore, a 15% increase from ₹6,920 crore last year. Despite the profit growth, APSEZ’s stock price dropped by 5% to ₹1,042 after the results were announced. Most of the company’s earnings came from port and SEZ activities, bringing in ₹7,413 crore. Their operating profit (EBITDA) was ₹4,802 crore, up 15% from ₹4,186 crore last year. The company’s debt situation also improved, as its debt-to-profit ratio went down from 2.3 to 2.1 times. APSEZ’s CEO, Ashwani Gupta, said the company is growing steadily, gaining market share, and improving efficiency. He also announced a new trucking service to improve transportation. The company has now adjusted its profit forecast for the full year 2025, expecting to earn between ₹18,800 crore and ₹18,900 crore. Even though the company performed well, its stock price dropped because investors were expecting even higher profits. 

Potentials

Adani Ports and Special Economic Zone (APSEZ) has significant growth opportunities as it continues to expand its operations. The company is investing heavily in ports, airports, and logistics hubs, with a ₹30,000 crore investment planned in Kerala over the next five years. A major part of this investment is focused on developing the Vizhinjam port, which aims to become one of the largest transshipment hubs in the world. Additionally, APSEZ is handling increasing volumes of cargo, with an 8% rise in December 2024. Container volumes are also growing, contributing to higher revenues. The company’s financial performance remains strong, with a 14% increase in net profit in Q3 FY25, reaching ₹2,520 crore, while revenue grew by 15%. Strategic investments in logistics and e-commerce hubs, particularly in Kochi, and improvements in railway infrastructure further support the company’s expansion. 

However, APSEZ also faces certain risks that could impact its growth. Despite its profit increase, the earnings were below analysts’ expectations, which might affect investor confidence. The company’s business is closely linked to global trade, meaning any slowdown in the world economy could reduce cargo volumes and revenue. Additionally, regulatory challenges, environmental restrictions, and political factors could delay projects like the Vizhinjam port. Competition from other major ports in India and neighboring countries is another risk, as it could limit APSEZ’s market share. To sustain its growth, the company needs to effectively manage these risks while continuing its strategic expansion. 

Analyst Insights

Key Metrics:

Market Value: ₹2,31,329 crore 
Price-to-Earnings (P/E) Ratio: 21.9  
Book Value per Share: ₹265  
Dividend Yield: 0.56%  
Return on Capital (ROCE): 12.9%  
Return on Equity (ROE): 18.1%  
Dividend Payout: 19.3%  
Sales Growth (Last 10 Years): 18.7% per year on average 

Adani Ports is growing steadily, reporting a 14% increase in profit compared to last year. The company is investing ₹30,000 crore in Kerala to expand its ports, airports, and logistics infrastructure, which will boost its future earnings. One major project, the Vizhinjam transshipment port, is expected to become one of the biggest in the world, helping India become a key player in global trade. However, there are challenges. The company’s recent profit was lower than expected, which has made some investors cautious. Factors like global trade uncertainties, government regulations, and competition from other ports could impact future growth. Also, the stock is currently priced at a P/E ratio of 21.9, meaning it is not too expensive but not undervalued either. 

If you already own the stock, then hold onto it for long-term growth. The company has strong fundamentals, so it remains a good investment in the infrastructure and logistics sector.