Why is the Delhivery stock price falling? Shares in Delhi continued their southward journey, as shares hit an all-time low in Friday’s intra-day trade, hitting an otherwise firm market. Shares of Delhi recorded the highest fall of 17.07 per cent on Thursday. The stock continued its decline on Friday and fell 18.87 per cent to a record low of Rs 382.25 in morning trade.
With Friday’s fall, the company’s share price has corrected 46 per cent from its record high of Rs 708.45, which it touched on July 21, 2022. Delhi made its market debut on 24 May. Currently, the stock trades at 21 per cent below its issue price of Rs 487 per share.
At 11:58 am, the stock was trading at Rs 388, down 18% from its last day’s trading price of Rs 471.
“While the festive season shipment volume growth will extend to Q322 as well, we expect a moderate growth in shipment volumes during 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 integration of Delhivery and SpotOn networks. However, the business is on a recovery track and we have registered high teens growth in freight tonnage on a QoQ basis (Q2FY23 v/s Q1FY23).”
The volumes of the company’s supply chain services (SCS) and truckload (TL) businesses also declined in Q2 of FY23 as compared to Q1 of FY23 due to seasonal impact in customer turnover.
However, both the businesses (SCS and TL) have shown substantial double-digit growth as compared to Q2FY22, Delhivery said.
It added that it monitors the further movement of market sentiment. “We have made substantial capacity investments to maintain our current rate of growth in FY 2012 and early FY 2013 and expect new mega-gateways and sorter decisions only by the beginning of FY 24,” it said.
“Our cross-border business also showed steady growth on a year-on-year basis, despite the global slowdown and declining yields for both air and sea freight. As inflationary pressures and service disruptions on account of softening monsoon across the country, we expect volumes, revenue and service margins to improve going forward,” it added.
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