Comments
IDBI Capital
Blue Dart (Sell)
CMP: ₹5,100.45
Target: ₹3,736
Blue Dart Express reported revenue growth of around 23 per cent y-o-y, better than our estimate. Adjusted operating profit margin increased 257 bps y-o-y and 61 bps q-o-q to 11.4 per cent during Q2FY15. APAT increased around 55 per cent y-o-y (better than our expectation), due to improved operating margins and lower tax rate (25.2 per cent of profit before tax). Management said E-commerce segment have been growing at 50-60 per cent y-o-y and currently contributing around 18 per cent of revenues. Due to better than expected performance in Q2FY15, we are increasing our FY15 operating profits and PAT estimates by about 5 per cent and 5 per cent respectively. We are raising our FY16 operating profits and PAT estimates by 4.4 per cent and 4.3 per cent respectively. We are positive on the revenue growth prospects of express segment and E-commerce segment on the back of improvement in economic growth but considering rich valuations, we maintain our ‘Sell’ rating.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.