Motilal Oswal initiates Delhivery stock with Buy rating, cites strong growth

Published 09/07/2025, 06:28
Motilal Oswal initiates Delhivery stock with Buy rating, cites strong growth

Investing.com - Motilal Oswal Securities initiated coverage on Delhivery (NSE:DELH) Ltd (NSE:DELHIVER) with a Buy rating and a price target of INR480.00 on Wednesday.

The brokerage highlighted Delhivery’s impressive 32% revenue compound annual growth rate (CAGR) from FY19 to FY25, primarily driven by its express parcel and part-truck load (PTL) segments. During this period, the company achieved a significant turnaround, posting EBITDA of INR3.7 billion in FY25 compared to an operating loss of INR16 billion in FY19.

Motilal Oswal expects Delhivery to maintain its market dominance with a projected 14% revenue CAGR, supported by 18% growth in the PTL business and 10% in express parcels over the FY25-28 period.

The firm forecasts Delhivery’s EBITDA and adjusted profit after tax to grow at CAGRs of 36% and 52% respectively through FY28, driven by strong revenue growth and an improved cost structure.

Motilal Oswal also noted that Delhivery’s return on equity is expected to improve from 1.8% in FY25 to 5.6% in FY28, with its strong balance sheet and minimal debt positioning the company to comfortably fund upcoming capital expenditure requirements.

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