Why did Delhivery shares dip today? Stock tanks 10% from day’s high

Shares of logistics major Delhivery ended over 6 per cent lower on Tuesday, after slipping more than 10 per cent intraday from its high of Rs 275.75. The stock settled at Rs 251.60 on BSE, down from the previous close of Rs 268.45. This sharp fall came even as the broader market saw a bounce-back in the second half.

High volumes point to sharp profit booking

Over 27.4 million shares changed hands on NSE and BSE combined, significantly higher than its weekly average of 7.8 million and monthly average of 3.9 million. Analysts attributed the drop to profit booking after a recent run-up and a cautious outlook ahead of the Ecom Express merger.

Ecom Express deal raises synergies and concerns

Delhivery recently announced the acquisition of Ecom Express, India's second-largest B2C third-party logistics player, for Rs 1,400 crore. The deal values Ecom at 0.6x EV/sales (FY24), and the combined entity is expected to command 55–60 per cent market share in the B2C express segment.

While the merger could create scale advantages, analysts like Emkay Global flagged near-term risks. Rising insourcing of logistics by e-commerce firms such as Meesho could weigh on Delhivery’s volume growth in the quarters ahead.

Technical indicators signal weakness

Technically, Delhivery shares are trading below all key moving averages 5, 10, 20, 50, 100, 150 and 200-DMA. The Relative Strength Index (RSI) stood at 54.5, suggesting the stock is neither overbought nor oversold. Meanwhile, the Money Flow Index (MFI) hit 70.3, indicating mild overbought conditions, which could lead to short-term correction.

What should investors do?

Despite today’s correction, Emkay retains a ‘Buy’ rating with a revised price target of Rs 400 (cut by 6 per cent). The brokerage believes the Ecom deal is value-accretive, but execution and volume growth are key monitorables.