Daijiworld Media Network - Mumbai

Mumbai, Apr 10: Global brokerage HSBC has reiterated its ‘hold’ rating on Delhivery Ltd while raising its target price to Rs 500 from Rs 470, citing improved long-term growth assumptions.

At the current market price of around Rs 470.5, the revised target suggests a modest upside of about 6%. The brokerage noted that while Delhivery remains a strong and competitive player in India’s logistics sector, investors may need to wait for a more favourable entry point amid a phase of slower — though still above-market — growth.

HSBC said that with the integration of Ecom Express, investor attention is likely to shift towards parcel volume growth and margin expansion.

The brokerage also highlighted the stock’s resilience despite concerns over fuel inflation linked to Middle East tensions. Since February 27, Delhivery shares have risen around 6%, outperforming peers like Shadowfax and the broader BSE Sensex, which declined during the same period.

Fuel costs, which account for roughly 9–10% of the company’s transportation revenue, are typically passed on to customers with a one-month lag. During the fuel price surge between 2020 and 2022, Delhivery managed cost pressures by increasing the use of trailer operations, which now handle about 72% of volumes and reduce fuel consumption significantly.

The brokerage added that service EBITDA margins have improved due to scale efficiencies and operational optimisation.

Shares of Delhivery rose over 1% in intraday trade on Friday to Rs 470.90, in line with gains in the NSE Nifty 50. The stock has surged over 90% in the past year and nearly 18% so far this year.

According to Bloomberg data, of the 23 analysts tracking the company, 19 have a ‘buy’ rating, three recommend ‘hold’, and one suggests ‘sell’. The average 12-month consensus target price stands at Rs 525.95, indicating a potential upside of nearly 12%.