BSE CODE 526612
We had recommended Blue Dart Express (BDE) in Volume 31 issue no. 24 dated October 31- November 13, 2016 under “Special Report” section when the scrip was trading at ₹5105. Our recommendation was backed by factors such as strong market share, excellent operating leverage experienced by BDE and strong growth expectancy of the industry. BDE is South Asia’s premier courier and integrated air express package distribution company.
BDE has an extensive domestic network covering over 35,000 locations, and service more than 220 countries and territories worldwide through its group company DHL.
On the financial front, BDE posted a 7.2 per cent increase in its revenue to ₹666.66 crore in Q1FY18 from ₹621.37 crore in Q1FY17. Moreover, the company’s PBDT declined by 43.65 per cent to ₹43.75 crore in the first quarter of FY18 on a year on year basis. The company’s net profit too declined by
52.21 per cent to ₹21.09 crore for the first quarter of fiscal year 2017 against the same period in the previous fiscal year.
On annual basis, the company’s revenue rose by 4.97 per cent to ₹2680.87 crore in FY17 compared to the previous fiscal. The company’s PBDT decreased by 22.06 per cent to ₹260.99 crore in FY17 on a yearly basis. The company’s net profit declined from ₹189.88 crore in FY16 to ₹139.57 crore in FY17. Weak investments in the economy accompanied by the government’s demonetisation scheme and GST roll out have impacted the earnings of the company, reflecting in its stock market performance. The stock is currently trading at ₹4200 per share.
On observing the recent trend around the stock, the stock seems to be downward bent. We recommend our readerinvestors to EXIT.