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EUR 88.49
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Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.. It also provides value-added services such as e-commerce return services, installation and assembly services and fraud detection. As of Jun 2021 (1Q22), it had 21,342 active customers and had a postal index number (PIN) code reach of 17,045.
Delhivery has more than doubled its revenue over FY19-21, owing to the fast growth of both its express parcel and PTL segments, along with incremental revenue from other segments as well. The company remains one of the leaders in the 3PL express parcel segment and has been expanding its offering in other segments as well. However, the company has failed to turn a profit, despite its rapid growth. It doesn’t appear to have had much margin improvement despite doubling its revenue.
We’ve covered various aspects of the deal in our earlier notes, Delhivery Pre-IPO - Riding the e-commerce boom but not showing clear signs of delivering profits and Delhivery IPO - Peer comp and thoughts on valuation. In this note, we will undertake a peer comparison and talk about valuations.
Delhivery IPO
Delhivery is looking to raise US$680m in its upcoming India IPO, the company is backed by a host of financial investors, the largest being Softbank.Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.. It also provides value-added services such as e-commerce return services, installation and assembly services and fraud detection. As of Jun 2021 (1Q22), it had 21,342 active customers and had a postal index number (PIN) code reach of 17,045.
Delhivery has more than doubled its revenue over FY19-21, owing to the fast growth of both its express parcel and PTL segments, along with incremental revenue from other segments as well. The company remains one of the leaders in the 3PL express parcel segment and has been expanding its offering in other segments as well. However, the company has failed to turn a profit, despite its rapid growth. It doesn’t appear to have had much margin improvement despite doubling its revenue.
We’ve covered various aspects of the deal in our earlier notes, Delhivery Pre-IPO - Riding the e-commerce boom but not showing clear signs of delivering profits and Delhivery IPO - Peer comp and thoughts on valuation. In this note, we will undertake a peer comparison and talk about valuations.
Underlying
Delhivery
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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