Q3 FY21 Result and Concall Update - BlueDart Express - YES Securities

(Rating: ADD, TP: Rs 4,403, Upside 11%)

- View - The Company saw strong recovery across Air and Surface segments. The weakness in documents segment was more than covered by the packages segment growth. We expect BDE to enjoy premium pricing in some of the segments and we expect it to benefit from generally economic recovery. We roll forward our estimates to FY23 and upgrade the stock from REDUCE to ADD with target of Rs. 4,403 (45x FY23 P/E).

- Quarter summary - Revenues grew by 21% yoy to Rs10.3 bn. The growth was driven by ~15% growth in volumes and balance in realizations. BDE saw strong pickup from sectors like E-commerce, Pharma and Consumer Electronics driven by shift in Consumer buying behavior and consumption pattern. Moderation in Freight Handling costs and employee cost supported profitability. The margins were supported by operating leverage as festive demand supported volumes and pricing. The margins may marginally correct in coming quarters.

- Price increase - BDE had levied Emergency Situations Surcharge on certain shipments to offset low capacity utilization which got over by December. It was to be replaced through general price increase (GPI) from January 2021. The Company is currently in discussion with customers to implement the price increase.

Shares of BLUE DART EXPRESS LTD. was last trading in BSE at Rs.3970.9 as compared to the previous close of Rs. 4165.3. The total number of shares traded during the day was 4986 in over 1134 trades.

The stock hit an intraday high of Rs. 4389.4 and intraday low of 3935. The net turnover during the day was Rs. 20447371.

Source : Equity Bulls

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