Why Is Delhivery Stock Price Falling? Shares of Delhivery have continued their southward journey, as shares hit all-time low in Friday’s intra-day trade, in an otherwise firm market. Delhivery’s shares plunged as much as 17.07 per cent on Thursday, the most on record. On Friday, the stock continued its decline and fell as much as 18.87 per cent to Rs 382.25, a record low, in morning trades.
With Friday’s decline, the stock price of the company has corrected 46 per cent from its record high level of Rs 708.45, which it had touched on July 21, 2022. Delhivery made its market debut on May 24. Currently, the stock trades at 21 per cent below its issue price of Rs 487 per share.
At 11:58 am, the scrip was trading 18% lower at Rs 388 over its last day’s trading price of Rs 471 apiece.
“While the festive season sale surge in shipment volumes will spill over to Q3FY22 as well, we anticipate moderate growth in shipment volumes through the rest of the financial year," Delhivery said in a BSE filing on Wednesday.
“Our Part Truckload business faced operational challenges in Q1FY23 due to the integration of Delhivery and SpotOn networks. However, the business is on a path to recovery and we recorded high teens growth in freight tonnage handled on a QoQ basis (Q2FY23 v/s Q1FY23),” it said.
Volumes of the company’s supply chain services (SCS) and truckload (TL) businesses also declined in Q2FY23 against Q1FY23 due to the expected effects of seasonality in its customers’ businesses.
However, both businesses (SCS & TL) have shown substantial double-digit growth compared to Q2FY22, said Delhivery.
It added that it remains watchful of the market sentiment going forward. “We have made sufficient capacity investments in FY22 and early FY23 to sustain our current rate of growth and expect new mega-gateway and sorter decisions only by early FY24,” it said.
“Our Cross-Border business also showed steady growth on a YoY basis despite a global slowdown and a decline in yields for both air and ocean freight. As inflationary pressures and service disruptions due to monsoon ease across the country, we expect improvement in volumes, revenue, and service margins going forward,” it added.