Shares of logistics unicorn Delhivery hit their all-time low at INR 340.3 during the intraday trading on the BSE on Monday (November 21), falling as much as 3%, as its six-month lock-in period for pre-IPO shareholders expired.
A record 20 Mn shares were also traded on the day. However, Delhivery recouped some of the loss later in the day, ending Monday’s session 1.7% lower at INR 345.25.
The lock-in expiry today freed a total of over 500 Mn shares to be traded in the open market. Some of Delhivery’s major pre-IPO investors whose stakes were under lock-in are SoftBank, Canada Pension Plan Investment Board, Tiger Global, Alpha Wave Ventures, Times Internet, Steadview Capital, Fedex, among others.
The shares recorded their new all-time low for the second time in a month. In October, Delhivery hit its previous record low following a sell-off due to muted Q2 FY23 performance update amid declining consumer discretionary spending and growing inflationary pressure.
Though the stock has remained volatile since then, many brokerages remain bullish on Delhivery given its long-term growth momentum. It is important to note that Delhivery also reported a 60% narrowed loss of INR 254.1 Cr in Q2 FY23 from INR 635 Cr in the corresponding quarter last year. Meanwhile, its total income also surged 23% to INR 1,883.3 Cr in the quarter.
ICICI Securities in a note on Delhivery on Monday said, “While we acknowledge growth has been slowing in ecommerce sales in FY23, we believe it is a transient issue and is unlikely to be symptomatic of structural weakness in the space.”
The brokerage upgraded Delhivery to ‘buy’ from a ‘sell’ rating, but cut its price target to INR 460 from INR 477. The new price target implies an upside of over 33% to the last close of the shares. The brokerage also called Delhivery’s current price as a great opportunity to buy the “high-quality stock”.
Meanwhile, brokerage CLSA also upgraded Delhivery to ‘buy’ last week as the long-term growth outlook remains intact.