Delhivery shares slip 10% from intra-day's high on heavy volumes

On Monday, April 7, 2025, the stock price of Delhivery had gained 4 per cent to ₹268.45 after the company announced its acquisition of Ecom Express for ₹1,400 crore in an all-cash deal.

Shares of logistics solution provider Delhivery fell 8 per cent to ₹247.10 on the BSE in Tuesday’s intra-day trade amid heavy volumes in an otherwise firm market. The stock has declined 10 per cent from its intra-day high level of ₹275.75 on the BSE. It is the top loser among the constituents of the BSE 500 index. 

 

At 11:52 am, Delhivery shares were trading 7 per cent lower at ₹250.80, as compared to the 1 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped nearly two-fold. A combined 14.76 million equity shares, representing 1.98 per cent, of the total equity of Delhivery have changed hands on the NSE and BSE.

 

 

On Monday, April 7, 2025, the stock price of Delhivery had gained 4 per cent to ₹268.45 after the company announced its acquisition of Ecom Express Limited for ₹1,400 crore in an all-cash deal. This acquisition will consolidate Delhivery's position in the logistics sector in India. Yesterday, in intra-day trade, the stock had surged 14 per cent to ₹271.40, from its low of ₹238.20. 

 

The market price of Delhivery had hit a 52-week low of ₹236.80 on March 13, 2025. It has halved from its 52-week high level of ₹478 touched on April 12, 2024.  ALSO READ | Brigade Enterprises share price gains 5%; here's what sparked the rally

 

Delhivery is one of India's leading fully-integrated logistics services providers. With its nationwide network covering over 18,700 pin codes, the company provides a wide range of logistics services such as express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services.

 

Ecom Express is a leading end-to-end technology enabled logistics solutions provider to the Indian retail and ecommerce industry. The company provides first-mile pickup, processing, network operation, last mile delivery, reverse logistics and returns management under its flagship service – Ecom Express Services. The company also offers a complete suite of supply chain, storage and fulfillment solutions under its service line – Ecom Fulfillment Services.

 

The acquisition, approved by Delhivery’s board, is structured through a share purchase agreement (SPA) and is expected to close within six months, subject to regulatory approval from the Competition Commission of India (CCI). Upon completion of acquisition, Ecom Express will operate as a subsidiary of Delhivery.

 

Ecom Express's turnover for FY24 stood at ₹2,607 crore. This acquisition is a significant consolidation in the Indian logistics space. Both Delhivery and Ecom Express operate in similar segments, including B2C parcel delivery and express logistics. The combined entity is expected to benefit from better economies of scale and enhanced service levels for e-commerce clients, ICICI Securities said in a note.  ALSO READ | Stock Market LIVE: Sensex climbs 1280 pts to 74,400; Nifty at 22,580

 

Analysts at JM Financial Institutional Securities believe the acquisition could drive improved pricing discipline across the ecosystem, enabling substantial improvement in key metrics for the combined entity. The brokerage firm believes, after an initial period, the company would take a bottom-up approach to retain the necessary Ecom Express facilities while transitioning the majority of the business to its network as substantial overlap is likely to exist.

 

While valuations are fairly attractive, the acquisition is unlikely to be earnings accretive in the near-term. With a majority of customers being common between the two and given the learnings from the Spoton acquisition, analysts at Emkay Global Financial Services expect sales retention and network integration to be relatively smooth. However, concerns around Meesho increasing insourcing of logistics would continue to cast a shadow on the volume trajectory in the near-term, the brokerage firm said.