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Delhivery’s shares hit a 52-week low amid rising operational costs

Stocks
2 min Read Feb 11, 2025
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Shares of Delhivery Limited have reached a 52-week low, raising concerns among investors. The downward trend continued on February 11, 2025, with shares trading 1.90% lower at ₹291.30 on the Bombay Stock Exchange (BSE).

Strong Q3 performance fails to boost investor confidence

Despite the stock decline, Delhivery reported a 114% year-on-year increase in consolidated profit for Q3 FY25. The company announced a net profit of ₹25 crore, which is an increase from ₹11.7 crore in the previous year. Revenue from operations also grew by 8% to ₹2,378 crore. However, these strong financials have not translated into stock market gains.

Why is Delhivery's share price falling?

Several factors have contributed to the decline:

  • Increased competition in the logistics sector

  • Higher operational costs, including vehicle rentals and facility expenses

  • The slowdown in third-party logistics and increased insourcing by major clients

  • Lower-than-expected EBITDA, which fell to ₹102 crore from ₹109 crore year-on-year

Investment outlook: Should you invest in stocks like Delhivery?

For those looking to invest in stocks, Delhivery presents both risks and opportunities. The company's fundamentals remain strong, but market challenges persist. Investors should consider these developments carefully. It's essential to assess the broader market conditions and company-specific factors before making investment decisions. 

The logistics sector is currently facing challenges, including increased competition and rising operational costs, which could impact future profitability.

  • Short-term volatility versus long-term growth potential

  • Impact of rising operational costs on profit margins

  • Broader industry trends in logistics and e-commerce

Delhivery's competitive edge in logistics

Delhivery continues to expand its services, covering over 18,700 pin codes across India. It offers a range of logistics solutions, including express parcel delivery, part-truckload freight, and cross-border logistics. Despite current stock market fluctuations, the company remains a key player in the industry. 

Is this a good time to invest?

Investors should closely monitor Delhivery's financial performance and industry trends before making a decision. While the recent stock dip raises concerns, long-term prospects remain promising. Those looking to invest in stocks should weigh the risks and potential rewards carefully.

As of 12:00 PM on February 11, 2025, the shares of Delhivery Limited are trading 1.90% lower at ₹287.85 per share, compared to the previous close of ₹296 per share on the Bombay Stock Exchange (BSE).