Delhivery Emerges as Biggest Gainer Among New-Age Tech Stocks, While Broader Market Falters

• ByStartupStory     |    April 24, 2023

Amid apprehensions of an anticipated rate hike by the US Fed in its forthcoming meeting early next month, the performance of Indian new-age tech stocks was largely mixed, with only Delhivery, Nazara Technologies, Zomato, PB Finetech, and Paytm showing gains. The majority of new-age tech stocks incurred losses this week. The shares of Delhivery experienced a notable spike of nearly 10%, emerging as the biggest gainer for the week, while others recorded gains ranging from 0.5% to 5%.

This week, IT stocks have been struggling in the overall market following the less-than-expected performances of Infosys and TCS in Q4 FY23. The new-age tech stocks have also largely had a mixed week, with DroneAcharya incurring a significant loss of almost 6%, while other stocks such as Nykaa, EaseMyTrip, Tracxn, and IndiaMart InterMESH experienced falls between 0.1% and 4%. The upcoming results of Reliance Industries Ltd (RIL) for the quarter and year ended March 2023 are expected to impact the overall market performance next week. RIL’s net profit rose 18.3% YoY to INR 21,327 Cr in FY23, and its gross revenue rose by 2.8% to INR 2.39 Lakh Cr. In the broader equity market, the Sensex declined about 1.34% to 59,655.06 this week, while the Nifty50 fell by 1.1% to 17,624.05. On Friday, the indices remained relatively unchanged.

According to brokerage firm Bernstein, Delhivery’s stock has a price target (PT) of INR 360, which suggests a 0.7% upside to the stock’s last close. The firm believes that Delhivery’s growth and margins will recover after facing challenges in the partial truckload (PTL) and ecommerce segments. However, Bernstein also noted that the startup’s post-IPO growth and margin disappointments are a cause for concern and serve as a red flag when evaluating the company’s potential. Delhivery’s market share in ecommerce shipments reportedly fell to 21.5% in FY23 from 23% in FY22. The company has yet to file its Q4 and FY23 operating performance report. Additionally, the startup’s chief customer experience officer, Abhik Kumar Mitra, recently stepped down from his position. Delhivery’s shares have fallen almost 40% since its listing last year but are up 5.6% year-to-date.

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