Blue Dart Express share price rises more than 6% to scale 52-week highs post Q4 results: Should you Buy, Sell or Hold?

Stock Market Today: Blue Dart Express share price gained more than 6% to scale 52-week highs during the morning trades on Monday post Q4 results. Blue Dart Express had reported its earnings performance on Friday post market hours.  Blue Dart Express Board plans a 250% dividend for the investors.

The consolidated net profit reported by the company at ₹77.8 Crore grew 12% over ₹69.88 Crore during the year ago quarter. 

The net profit (adjusted for one-offs ) for Blue Dart Express, as per analysts calculations at ₹76 crore grew 8% over ₹70 crore during the year ago quarter.

The net revenues for the quarter at ₹132 Crore grew 9% year-on-year over ₹121 crore in the year ago quarter. 

Analysts said that Blue Dart Express reported steady set of numbers. The same were driven by the  shipment volume growth of 12% YoY during Q4FY24 as per analysts. 

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During FY24 the shipment volumes for Blue Dart Express increased 9.5% year-on-year and weights grew 4.4% year-on-year. 

Analysts at Nuvama Institutional Equities said that E-commerce contributes 30% to total volumes (during Q4), and they expect it to be one of the biggest growth drivers given healthy and steady demand.

On the whole, recovery is on track for Blue Dart Express as per Nuvama and the brokerage expects utilisation to improve over coming quarters. The Newly added aircraft shall lift air parcel volumes. They have slightly trimmed FY25 and FY26 earnings estimates by 1–6%, yielding a target price of ₹8,462 (earlier ₹8,871), valuing the stock at 38 times on FY26 estimates as they retain ‘BUY’ ratings.

Those at Emkay Stock Broking nevertheless said the strong performance by Blue Dart Express was  on the back of higher utilization of new aircrafts and general price increase undertaken in the March'2024 quarter. With Guwahati going live in January 2024, the analysts at Emkay said that management expects further ramp-up in volumes, utilization, and profitability. However maintaining growth momentum with a premium-pricing model in a highly competitive B2B express market remains a tall ask, in their view, they added.

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To be sure looking at the ongoing general elections and seasonality first half FY25 is expected to be  muted for logistics players and analysts at Emkay remain watchful around sustainability of volume growth and margins for Blue Dart Express. 

Meanwhile Blue Dart Express also has proposed a dividend at the rate of Rs. 25/- (Rupees Twenty Five only) per share payable on 2,37,27,934 Equity Shares of Rs.10/- each.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions