Delhivery IPO opens for subscription on 11 May 2022 and is scheduled to close on 13 May 2022. Like always, IPO Central is ready with its analysis of the upcoming IPO. Read on more for full Delhivery IPO review.
Delhivery is the largest and fastest growing fully-integrated logistics services player in India by revenue as of Fiscal 2021. It operates a pan-India network and provides its services in 17,045 postal index number (PIN) codes, as of 30 June 2021.It provides a full range of logistics services, including express parcel delivery, heavy goods delivery, PTL freight, TL freight, warehousing, supply chain solutions, cross-border express and freight services and supply chain software, along with value added services such as ecommerce return services, payment collection and processing, installation and assembly services and fraud detection.
Delhivery IPO Review – Strengths
- Rapid growth and extensive scale
- Integrated portfolio of logistics services
- Proprietary logistics operating system
- Vast data intelligence capabilities
- Network design and engineering;
- Strong relationships with a diverse customer base
- Extensive ecosystem of partners, enabling an asset-light business model and extended reach
- Highly qualified professional team
Delhivery IPO Analysis – Risk Factors
- History of losses and negative cash flows
- Funding requirements and the proposed deployment of net proceeds have not been appraised by any bank or financial institution or any other independent agency
- Reliance on network partners
- Contingent liabilities
- E-commerce customers contribute a majority of shipments. E-commerce customers accounted for 71.2% of its revenues in FY2021.
Delhivery IPO Analysis – Financial Performance
| Â | FY2019 | FY2020 | FY2021 | 9M FY2022 |
| Revenue | 1,694.9 | 2,988.7 | 3,838.3 | 4,911.4 |
| Expenses | 3,478.2 | 3,257.4 | 4,212.7 | 5,810.2 |
| Net income | (178.4) | (268.0) | (415.5) | (894.3) |
| Margin (%) | (10.5) | (9.0) | (10.8) | (18.2) |
Delhivery Valuations & Margins
| FY2019 | FY2020 | FY2021 | 9M FY2022 | |
| EPS | (47.22) | (5.22) | (8.05) | (15.36) |
| PE ratio | NA | NA | NA | NA |
| RONW (%) | (52.63) | (8.48) | (14.66) | (14.90) |
| ROCE (%) | NA | NA | NA | NA |
| EBITDA (%) | (8.29) | (6.19) | (2.75) | (4.82) |
| Debt/Equity | NA | NA | NA | 0.06 |
| NAV | NA | NA | 54.79 | 93.19 |
Delhivery IPO Review – Broker Calls
Angel One – Neutral
Arihant Capital –
Ashika Research –
Asit C Mehta –
BP Wealth – Avoid
Canara Bank Securities – Avoid
Choice Broking – Subscribe with caution
Elite Wealth – Neutral
GEPL Capital – Avoid
Hem Securities – Avoid
ICICIdirect – Not rated
Jainam Broking –
KR Choksey –
LKP Securities –
Marwadi Financial Services –
Nirmal Bang –
Reliance Securities –
Religare Broking –
Samco Securities – Avoid
Share India Securities –
SMC Global – 1.5/5
Systematix – Not rated
Ventura Securities – Subscribe
