Shares of logistics and supply chain management company Delhivery Ltd. dropped as much as 4 percent in intraday trade on Wednesday after shares worth Rs 410 crore exchanged hands in a block deal.

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Data shows that 1.7 percent of the company’s equity, or 1.22 crore shares, changed hands on the exchanges at an average price of Rs 338 apiece on Wednesday, a discount of over 3 percent on Tuesday’s closing price of Rs 348.90. No information was available on the buyers and sellers.

Consequently, after the block deal, Delhivery shares slipped around 4 percent to hit an intraday low of Rs 335 on the National Stock Exchange (NSE).

Interestingly, the stock was on a rising spree for the last seven trading sessions during which it had risen around 10.6 percent cumulatively.

Delhivery shares were also in focus on Wednesday after global equity research firm Macquarie said that it was maintaining its ‘outperform’ rating on the stock with a target price of Rs 440, indicating a potential upside of over 31 percent from Wednesday’s low.

Giving the rationale behind its stance, Macquarie said that e-commerce website Meesho’s volumes were better than expected in the December quarter. Meesho did 2,60,000 orders during the quarter, up 37 percent year-on-year, noted Macquarie.

According to estimates by Macquarie, Meesho accounted for 20-25 percent of Delhivery’s overall volumes in the fiscal year 2022.

For the December quarter, Delhivery reported a wider net loss of Rs 195.6 crore as against a net loss of Rs 126.5 crore in the same period last year. Revenue for the quarter was down 8.6 percent to Rs 1,823.8 crore, while its EBITDA loss was recorded at Rs 73.3 crore compared to an EBITDA profit of Rs 54.1 crore a year ago.

Shares of Delhivery are trading 2.65 percent lower at Rs 339.65.

(Edited by : Rukmani Krishna)

First Published:Feb 22, 2023 1:58 PM IST