Blue Dart Express Ltd - Q2FY18 Result Update - Kotak

Mid-single digit volume growth YoY despite increasing competition, weakness in the economy post demonetisation and implementation of GST, but strong growth in the e-commerce segment led to revenue of Rs 7.03 bn (+6% YoY) in Q2FY18 for BDE. Cost control measures within the company post implementation of strategy of Mckinsey led to strong EBIDTA of Rs 767 mn translating into EBIDTA margin of 10.9% (+400 bps points YoY). Consequently PAT was reported at Rs 413 mn (+48% QoQ and flat YoY). We interpret the results as strong for BDE and estimate further improvement in volumes and operating margins going ahead. We continue to believe that the stock would enjoy premium valuations for its dominant market share, strong asset base, strong BS and parentage of DHL. Maintain BUY with a reduced TP of Rs 4860 (from Rs 5150).

Shares of BLUE DART EXPRESS LTD. was last trading in BSE at Rs.4114.15 as compared to the previous close of Rs. 4103.75. The total number of shares traded during the day was 472 in over 182 trades.

The stock hit an intraday high of Rs. 4138.3 and intraday low of 4060. The net turnover during the day was Rs. 1938827.

Source : Equity Bulls

Keywords