Motilal Oswal Upgrade This Logistics Stock To Buy From Neutral, Scrip Up 258.69% In 3 Years

Motilal Oswal Financial Services, a renowned broking firm, upgrades the rating on Blue Dart Express Ltd. to buy from neutral for a target price of Rs 8,040 apiece. According to the given target price by the brokerage, if you buy this stock at the current market price, it can fetch up to 12% returns.

Blue Dart Express Ltd. is a midcap Logistics sector company involved in transportation and door-to-door distribution of time-sensitive shipments, through an integrated ground and air transportation network.

Valuations

According to Motilal Oswal Financial Services, "With lower ATF prices and a price hike in Jan'23, BDE's margin is likely to stabilize in the 13-14% range. BDE is also looking to increase the contribution from the Surface Express segment from current levels of 35%. Growth in Ground Express is expected to be 2x higher than growth in Air Express due to the cost differential between the two segments. BDE has added two aircraft to its fleet to cater to strong demand growth.

"With an improved outlook and a ~30% correction in the stock price from the high seen in Oct'22, we believe the stock is now attractively valued. We upgrade our rating to BUY from Neutral with a TP of INR8,040 (premised on 20x FY25E EV/EBITDA)," the brokerage firm.

Stock Outlook

The stock of Blue Dart Express last traded on BSE at Rs 7200.05 apiece. In 1 week, it declined 0.43% and jumped 9.06% in 2 weeks. It jumped 18.35% in 1 month, and 19.84% in 3 months, respectively. It declined 5.91% in 1 year, It gave a robust return of 258.69% in 3 years and 101.64% in 5 years, respectively.

The stock traded its 52 week high on Oct 04, 2022, at Rs 9,639.45 apiece and 52 week low on May 08, 2023, at Rs 5,633 apiece, respectively. It has a market capitalisation of Rs 17,060.86 Crore.

Disclaimer

The stock of Blue Dart Express is picked from the brokerage report of Motilal Oswal Finance Services. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.