Delhivery Shares Jump 4.6% in Morning Trade on Feb 13
Delhivery, a leading logistics giant in India, witnessed a significant surge in its stock price on February 13, with shares jumping as much as 4.6% during early trading hours on the Bombay Stock Exchange (BSE). The stock opened at the same price, with its market capitalization standing at ₹21,333.30 crore. The trade volume for the stock stood at a substantial 19.3 lakh shares.
This upward trend in stock prices comes despite the company receiving a tax demand notice of ₹3.32 crore. The notice was issued by the Income Tax Department, allegedly due to non-payment of taxes by the company. However, it seems that this development has not deterred investors from buying into the stock, leading to a significant uptick in its value.
Delhivery has been making headlines in recent times, with the company announcing its plans to expand its logistics services to more areas. In January, the company announced that it had received regulatory approvals to expand its services to 14 new cities, including Ahmedabad, Surat, and Vadodara. This move is expected to increase the company’s revenue and provide a boost to its growth prospects.
The company’s expansion plans are part of its strategy to increase its market share in the logistics sector. Delhivery has been aggressively expanding its network and services in recent times, with a focus on providing fast and reliable delivery services to its customers. The company has also invested heavily in its technology infrastructure, including its logistics management system, to ensure seamless operations.
Delhivery’s growth prospects have also been boosted by the increasing demand for e-commerce services in India. The Indian e-commerce market has been growing rapidly in recent times, with more and more consumers turning to online platforms to make their purchases. This has led to a surge in demand for logistics services, with companies like Delhivery benefiting from this trend.
In addition to its e-commerce services, Delhivery also provides logistics services to various industries, including pharmaceuticals, automotive, and FMCG. The company’s services include last-mile delivery, warehousing, and transportation, among others. Its clients include some of the biggest names in the industry, including Amazon, Flipkart, and Pepperfry.
Delhivery’s stock has been on a roll in recent times, with the company’s market capitalization increasing by over ₹10,000 crore in the past quarter. The company’s revenue has also been growing steadily, with its net revenue increasing by over 50% in the past year.
The company’s financial performance has been driven by its strong operational performance, with Delhivery reporting a net profit of ₹51.3 crore in the third quarter of FY22. Its revenue for the quarter stood at ₹1,434.3 crore, with its operating margin standing at 10.6%.
Delhivery’s growth prospects have also been boosted by its strong cash flows. The company reported a cash flow from operations of ₹1,134.8 crore in the third quarter of FY22, with its cash and cash equivalents standing at ₹2,454.6 crore.
In conclusion, Delhivery’s stock price surge on February 13 is a reflection of the company’s strong growth prospects and its ability to increase its market share in the logistics sector. Despite receiving a tax demand notice, the company’s stock price remains strong, driven by its expanding services, increasing revenue, and strong cash flows. As the company continues to expand its services and increase its market share, its stock price is likely to remain strong, making it an attractive option for investors.
Source:
https://inc42.com/buzz/delhivery-shares-jump-4-6-in-morning-trade/
