BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Delhivery Ltd.’s business-to-consumer heavy business model has a potential profit pool of Rs 63 billion in India in our view (by FY26E).
Our base case assumes Delhivery to capture ~25% of the same. We see significant scope of operating leverage with global best practices in distribution, sorting as well as consolidation likely streamlining processes.
What helps us to take the leap of faith toward profitability is that the company captured ~90% of incremental third-party logistics e-commerce distribution market (FY19-22) – a rare feat in itself across industries.
We expect profit after tax of Rs 9.4/15.7 billion by FY25/26E. Management’s plan is to press for operational efficiencies and pass on the same to customers (partly), thereby meaningfully creating/capturing the incremental market.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR