Margin recovery key for Blue Dart Express stock, volume growth expected

Operating profit margins expected to rise 13% in FY25 on better capacity utilisation, lower Brent-ATF disparity

The stock of Blue Dart Express slipped by 15 per cent after its 2023-24 (FY24) April-June quarter (first quarter, or Q1) results in July, falling to Rs 6,201 per share before making a modest recovery in September. It is currently trading at around Rs 6,620 per share on the BSE. Brokerages lowered their earnings estimates following muted results in Q1FY24.

While analysts remain optimistic about the stock’s medium-term prospects, they highlight near-term concerns stemming from lower realisations due to changes in the product mix and margin pressures resulting from new plane additions.

Some of these concerns were evident in the