Equirus has initiated a ‘Long’ rating on Delhivery with a target price of ₹459, highlighting the company’s strong growth prospects and market leadership in the logistics space. The brokerage forecasts a robust 14% revenue CAGR over FY24-27, driven by operating leverage and improved margins in the B2B Part-Truckload (PTL) segment. Equirus expects EBITDA margins to expand to 8.6% by FY27, reflecting operational efficiencies and improved cost structures.
Delhivery’s rapid market share gains from traditional B2B players and its transition towards sustained profitability are seen as key drivers for premium valuations. Currently, the stock trades at a P/E of 142x, 69x, and 39x for FY25, FY26, and FY27, respectively, alongside EV/EBITDA of 57x, 35x, and 22x. Equirus believes Delhivery’s valuation premium is justified, given its rapid scale-up and potential to remain a dominant player in India’s logistics sector.
