Cup & Handle pattern and Trendline Breakout - DELHIVERYTechnical Analysis:
Current Price: ₹351.25 (Note: Live prices can fluctuate. As of the market close today, Delhivery closed around ₹350.60 on the NSE).
Target: Your target of ₹410 suggests a potential upside.
Trendline Breakout: Breaking above a significant downtrend line can indicate a shift in momentum towards an uptrend.
Cup & Handle Pattern Breakout Confirmation: The confirmation of a breakout from a Cup & Handle pattern is a bullish continuation signal, suggesting a potential move higher.
Time Frame: A 1 to 3-month timeframe is reasonable for these patterns to play out if the breakouts are sustained.
Confirming the Breakouts:
Volume: It's crucial to assess if both the trendline and Cup & Handle breakouts were accompanied by a noticeable increase in trading volume. Strong volume adds conviction to the validity of the breakouts.
Sustainability: Monitor if the price holds above the breakout levels in the coming trading sessions.
Potential Upside:
Target (₹410): Represents a potential upside of approximately 16.7% from the ₹351.25 level (or around 17.0% from the ₹350.60 closing price).
Quarterly and Yearly Results & EPS Comparison:
Based on the information available up to the latest reported quarter (December 2024) and the previous fiscal year (FY24):
Latest Quarter Result (December 2024 - Q3FY25): Delhivery reported a consolidated net profit of ₹11.7 crore, compared to a loss of ₹102.9 crore in the same quarter last year. Revenue from operations increased by 19.8% YoY to ₹2,020.7 crore. This marked their second consecutive profitable quarter.
Yearly Result (FY24): For the full fiscal year ending March 2024, Delhivery reported a net loss of ₹1,007.4 crore on a revenue of ₹7,863.7 crore.
EPS Comparison:
Quarterly EPS (December 2024): ₹0.02 (positive), compared to ₹-1.41 in December 2023.
Yearly EPS (FY24): ₹-13.80.
We will need the results for the quarter ending March 2025 (Q4FY25) and the full fiscal year ending March 2025 (FY25) for the most up-to-date comparison. These are expected in the coming weeks. The recent profitability is a significant positive development.
P/E Comparison:
Given that Delhivery has only recently turned profitable, a traditional P/E ratio might not be the most meaningful metric right now. Investors will likely be focusing on the sustainability of their profitability and future growth prospects. As they continue to report profits, a P/E ratio will become more relevant for valuation comparison with peers in the logistics and e-commerce enablement space.
Corporate Action:
As of the latest information, there haven't been any recent significant corporate actions like dividends or stock splits announced by Delhivery. Investors should keep an eye on any future announcements from the company.
Latest News (as of May 19, 2025):
Recent news around Delhivery has been largely positive, focusing on:
Return to Profitability: The consecutive profitable quarters (September and December 2024) have been a major highlight, indicating a turnaround in their financial performance.
Focus on Efficiency and Cost Optimization: The company's efforts to improve operational efficiency and optimize costs are being recognized as key drivers for their profitability.
Growth in Key Business Segments: Reports often highlight the growth in their express parcel and supply chain services.
Analyst Upgrades: Following the positive results, some analysts have upgraded their ratings and price targets for Delhivery.
Partnerships and Expansions: Any news regarding new partnerships or expansion of their network and services is usually viewed positively.
Key Factors to Monitor:
Breakout Sustainability: Watch if the price holds above the breakout levels with good volume.
Upcoming Q4 & FY25 Results: These will be crucial to confirm the sustainability of their profitability and provide further direction for the stock. Look for the announcement dates.
Operational Efficiency: Continue to monitor the company's progress in improving efficiency and reducing costs.
Competition and Industry Trends: Keep an eye on the overall logistics and e-commerce landscape in India.
In conclusion, the potential Trendline and Cup & Handle breakouts on Delhivery, coupled with the recent return to profitability, suggest a bullish outlook with your target of ₹410 within a 1 to 3-month timeframe. However, it's important to monitor the sustainability of the breakouts, closely watch the upcoming full-year results, and consider the overall market sentiment and industry dynamics.
