MOSL: BLUE DART EXPRESS (Neutral)-Festive demand drives volumes in 2QFY22
BLUE DART EXPRESS: Festive demand drives volumes in 2QFY22
(BDE IN, Mkt Cap USD2.2b, CMP INR6805, TP INR7640, 12% Upside, Neutral)
- Blue Dart Express (BDE)’s topline grew 30% YoY to ~INR11.2b (+30% QoQ). Revenue growth was driven primarily by healthy volume growth of 29% QoQ to 0.24m tonnes in 2Q.
- EBITDA grew 35% YoY to INR2b (+138% QoQ). The EBITDA margin jumped to a near-record high of 17.7% (+61bp YoY); it improved on account of better realization and steps undertaken to increase efficiency.
- The company offered a one-time payment of INR360m rewarding its employees for their outstanding efforts during the COVID-19 crisis.
- Strong operating performance and lower depreciation resulted in 66% YoY growth in adjusted PAT to INR1.3b.
- We raise our EPS estimates by 26%/21% for FY23E/FY24E, factoring in the improved margin outlook. Margins are expected to be higher than earlier anticipated, driven by high freight rates and the cost efficiency measures undertaken. We maintain our Neutral rating, with revised TP of INR7,640/share (27x FY24E EV/EBITDA).
Blue Dart Express is engaged in the business of integrated air and ground transportation of time-sensitive packages to destinations in the domestic and international sectors. Co. has a reciprocal agreement with Federal Express Corporation ("FedEx") to supplement their distribution networks for international shipments. Co. is provider of pick-up, domestic transportation, customs clearance and delivery services to FedEx in India, as well as being the consolidator for FedEx International priority services. Co. is also engaged in the leasing business.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.