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Delhivery shares soar 14% after Q4 net profit, but will they re-test their IPO price?Brokerage firm Nuvama said that Delhivery's sustained profitability, lower capex, aggressive growth in PTL with strong margins, and strategic acquisitions are likely to drive future performance.By Meghna Sen   May 19, 2025, 10:34:08 AM IST (Published)2 Min ReadShares of Delhivery Ltd., the logistics services provider, climbed as much as 14% on Monday, May 19, after the company's March quarter results.

Brokerage firm Nuvama Institutional Equities has maintained a ‘Buy’ rating on Delhivery and raised its target price to ₹430 from ₹380 earlier.

Nuvama believes Delhivery is well positioned to benefit from consolidation in the Express Parcel segment, especially with the pending acquisition of eCom Express (subject to CCI approval), along with the rapid scale-up of its Partial Truckload (PTL) business and improving margins.

The brokerage mentioned that sustained profitability, lower capex, aggressive growth in PTL with strong margins, and strategic acquisitions are likely to drive future performance.

As a result, Nuvama has raised its EBITDA estimates by 8% and 13% year-on-year, primarily due to improved margins in the PTL segment.

Goldman Sachs maintains a 'Neutral' rating on Delhivery, with a target price of ₹325 per share.

In Q4, Delhivery reported revenue of ₹2,190 crore, a 5.6% increase year-on-year. Growth in the e-commerce segment remained weak, with volumes up just 1% and revenue up 3%. However, Partial Truckload (PTL) volumes grew 19% year-on-year.

The adjusted EBITDA margin was 2.5%, well above Goldman's estimate of 0.5%, mainly due to strong improvement in PTL service profitability.

The company's margin gains are being driven more by operating leverage in PTL, thanks to better mid-mile utilisation, than by the e-commerce segment. Sustained improvement in PTL over the coming quarters will be key for the stock's performance.

Shares of Delhivery are currently trading 11.83% higher at ₹358.80. The stock continues to remain below its IPO price of ₹487. With Monday's rally, the stock has risen 3% so far in 2025.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsDelhiveryshare market today