Motilal Oswal has given Neutral recommendation for Blue Dart Express with a target price of Rs. 7390 in its research report issued on Dec 07, 2021
Motilal Oswal’s research report on Blue Dart Express
We recently released our Logistics thematic report, wherein we stressed upon the superlative growth potential of the Indian Logistics sector and the opportunities for the organized players like Blue Dart Express (BDE). We had assigned a Neutral stance on the stock owing to its rich valuation. The unparalleled network presence of BDE and strong growth in Express cargo would drive consistent growth in volumes across its offerings over the next few years. With the easing of fuel prices (on account of tax cuts), margin is expected to remain at elevated levels in the near term. BDE is looking to increase its contribution from Ground Express segment from current levels of ~30%.
We expect BDE to clock a revenue/EBITDA/PAT CAGR of ~17%/18%/36% over FY21-24E and retain our Neutral rating, with a revised TP of INR7,390/share (27x FY24E EV/EBITDA).