Delhivery shares extended losses for the second straight session as the equity market hit record highs today, according to a report by logistics services provider. Delhivery's stock fell to a new low of Rs 310.1 against the previous close of Rs 323.60 on the BSE. Delhivery's shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock fell 56.22 per cent from its all-time high of Rs 708.45 on the BSE with today's low. The market cap of Delhivery fell to Rs 22,718 crore.
The firm's shares have changed hands for a total of 0.80 lakh, which is a turnover of Rs 2.53 crore on the BSE. The stock fell 12.39% in a month. The Delhivery stock lost 36.32 per cent or Rs 176.9 from its IPO price of Rs 487 with today's fall. From May 11 to May 13 the IPO of Delhivery was open.
The company offered its shares in a price band from Rs 462 to Rs 487. The Delhivery share was listed on May 24, 2022 at a premium of 1.68% at Rs 495.20 on the NSE. The stock was listed at Rs 493, which is 1.23 per cent higher than the IPO price.
In the second quarter of the current fiscal, Delhivery reported a loss of Rs 254 crore against a loss of 635 crore in the year-ago period. The logistics firm's loss decreased sequentially as it stood at Rs 399 crore in the June 2022 quarter.
Revenue in Q 2 was higher than Rs 1,796 crore, 22 percent higher than Rs 1,497. In the corresponding quarter of the last fiscal, 7 crore were reported. Revenue numbers for Q2 rose marginally quarter-on-quarter as well as from Rs 1,745. In Q 1 of FY 23 there were 7 crore.
JM Financial has a neutral view on Delhivery. The brokerage said Delhivery had a strong and successful IPO in May 2022, when most internet stocks were struggling to raise funds. JM Financial said the company showed pro forma profitability for FY 22 while growing revenue by 63 per cent YoY.
SpotOn has not been an easy integration and has resulted in a loss of adjusted Ebitda of Rs 342 crore in H 1 FY 23 against Rs 7.2 crore profit in FY 22. JM Financial believes that Delhivery will become profitable by the end of the current fiscal year with the company claiming that integration is now complete and the gross margin on incremental revenue of 50 per cent.
The company can benefit from amortising the fixed costs, but we expect margins to improve only with simultaneous improvement in scale.