Blue Dart Stocks Soar to 52-Week Highs Following Stellar Q4 Results: Investment Opportunities in Sight?

• Blue Dart Express shares surge over 6% to reach 52-week highs following the announcement of Q4 results.
• The company reported a 12% growth in consolidated net profit at ₹77.8 Crore, compared to ₹69.88 Crore in the same quarter last year.
• Blue Dart Express Board announces a 250% dividend for investors.

Blue Dart Express shares hit 52-week highs following impressive Q4 results and a 250% dividend announcement. The company’s consolidated net profit saw a 12% increase year-on-year.

Impressive Q4 Results Drive Stock Surge

Blue Dart Express reported its earnings performance after market hours on Friday, revealing a consolidated net profit of ₹77.8 Crore. This represents a 12% growth over the ₹69.88 Crore reported during the same quarter last year. The net profit, adjusted for one-offs, was calculated by analysts at ₹76 crore, marking an 8% increase over the ₹70 crore reported in the year-ago quarter.

Revenue Growth and Dividend Announcement

The company’s net revenues for the quarter stood at ₹132 Crore, a 9% year-on-year increase from ₹121 crore in the year-ago quarter. Analysts have attributed this steady growth to a 12% YoY shipment volume growth during Q4FY24. In addition, the Blue Dart Express Board has announced a 250% dividend for investors, further boosting investor confidence in the stock.

E-commerce Drives Growth

Analysts at Nuvama Institutional Equities noted that e-commerce contributed 30% to total volumes during Q4, and they expect it to be one of the biggest growth drivers given the healthy and steady demand. The brokerage expects utilisation to improve over the coming quarters, with the newly added aircraft expected to lift air parcel volumes.

Future Outlook

Despite the strong performance, analysts at Emkay Stock Broking noted that maintaining growth momentum in a highly competitive B2B express market remains a challenge. However, with Guwahati going live in January 2024, the management expects further ramp-up in volumes, utilization, and profitability. The first half of FY25 is expected to be muted for logistics players due to the ongoing general elections and seasonality, but analysts remain watchful around the sustainability of volume growth and margins for Blue Dart Express.

Conclusion

Blue Dart Express has demonstrated strong performance in Q4, driven by growth in e-commerce and increased shipment volumes. While challenges remain in maintaining this momentum, the company’s management is optimistic about future growth. Investors will be closely watching the company’s performance in the coming quarters.