Current Rating and Its Implications
MarketsMOJO's 'Sell' rating for Blue Dart Express Ltd indicates a cautious stance for investors considering this stock. This recommendation suggests that the stock may underperform relative to the broader market or its sector peers in the near term. The rating was revised on 08 Dec 2025, reflecting a reassessment of the company's prospects based on a comprehensive evaluation of quality, valuation, financial trends, and technical indicators. Investors should interpret this rating as a signal to carefully analyse the stock's current fundamentals and market dynamics before making investment decisions.
Here's How Blue Dart Express Ltd Looks Today
As of 25 December 2025, Blue Dart Express Ltd exhibits a mixed financial and operational profile. The company's Mojo Score stands at 46.0, categorised under the 'Sell' grade, down from a previous 'Hold' rating with a score of 51. This decline in score reflects shifts in key performance parameters that have influenced the current recommendation.
Quality Assessment
Blue Dart Express Ltd maintains an excellent quality grade, underscoring its strong operational capabilities and business model resilience. The company’s return on capital employed (ROCE) for the half-year period is recorded at 16.46%, which, while the lowest in recent periods, still indicates a reasonable efficiency in generating returns from its capital base. However, the debtors turnover ratio has declined to 6.31 times, signalling a slower collection cycle that could impact liquidity. Additionally, interest expenses have risen to Rs 21.72 crore quarterly, which may weigh on profitability margins going forward.
Valuation Considerations
Currently, Blue Dart Express Ltd is considered expensive based on valuation metrics. The stock trades at an enterprise value to capital employed (EV/CE) ratio of 6.1, which is above the average historical valuations of its peers. Despite this, the stock is trading at a discount relative to its sector’s typical valuation range, suggesting some market scepticism. The elevated valuation multiple, combined with flat financial results, raises concerns about the stock’s price sustainability in the near term.
Financial Trend Analysis
The financial trend for Blue Dart Express Ltd is currently flat. The latest data shows a profit decline of 5.9% over the past year, alongside a negative total return of 23.12% for the same period. Year-to-date returns stand at -21.35%, reflecting persistent challenges in the company’s earnings growth and market performance. The stock has consistently underperformed the BSE500 benchmark over the last three years, signalling a prolonged period of relative weakness compared to the broader market.
Register here to know the latest call on Blue Dart Express Ltd
- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Technical Outlook
The technical grade for Blue Dart Express Ltd is bearish, reflecting negative momentum in the stock’s price action. Recent price movements show a 0.56% decline on the latest trading day, with a one-month return of -5.08% and a three-month return of -5.69%. These trends suggest that market sentiment remains subdued, and the stock may face resistance in reversing its downward trajectory in the short term.
Sector and Market Context
Operating within the transport services sector, Blue Dart Express Ltd faces competitive pressures and evolving market dynamics. The company’s small-cap status adds an additional layer of volatility and risk, as smaller companies often experience greater price fluctuations. The consistent underperformance against the BSE500 benchmark over the past three years highlights the challenges Blue Dart has encountered in maintaining investor confidence and delivering superior returns.
Investor Takeaway
For investors, the 'Sell' rating on Blue Dart Express Ltd signals caution. While the company demonstrates strong quality fundamentals, the expensive valuation, flat financial trends, and bearish technical outlook collectively suggest limited upside potential in the near term. Investors should weigh these factors carefully and consider alternative opportunities within the transport services sector or broader market that may offer more favourable risk-reward profiles.
Our current monthly pick, this Mid Cap from Automobile Two & Three Wheelers, survived rigorous evaluation against dozens of contenders. See why experts are backing this one!
- - Rigorous evaluation cleared
- - Expert-backed selection
- - Mid Cap conviction pick
Summary of Key Metrics as of 25 December 2025
Blue Dart Express Ltd’s one-year return stands at -23.12%, with a year-to-date return of -21.35%. The company’s ROCE is 18.1%, while the enterprise value to capital employed ratio is 6.1. Interest expenses have increased to Rs 21.72 crore quarterly, and the debtors turnover ratio has slowed to 6.31 times. These figures collectively underpin the current 'Sell' rating and highlight the challenges the company faces in regaining growth momentum and market favour.
Investors should continue to monitor Blue Dart Express Ltd’s quarterly results and market developments closely, as any significant improvement in financial trends or valuation metrics could prompt a reassessment of its rating in the future. Until then, the cautious stance remains appropriate given the prevailing data.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
