Delhivery Ltd is Rated Sell by MarketsMOJO

Current Rating Overview

MarketsMOJO currently assigns Delhivery Ltd a 'Sell' rating, reflecting a cautious stance on the stock. This rating was revised from a previous 'Strong Sell' on 31 January 2026, accompanied by a significant improvement in the Mojo Score from 28 to 47. Despite this improvement, the 'Sell' grade indicates that investors should remain wary of the stock's risk profile and underlying fundamentals at this time.

Understanding the Rating Components

The 'Sell' rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of Delhivery Ltd's investment appeal and risk.

Quality Assessment

As of 19 February 2026, Delhivery Ltd's quality grade is classified as average. The company exhibits poor management efficiency, with a notably low Return on Equity (ROE) averaging just 0.45%. This figure suggests that the company generates minimal profit relative to shareholders' equity, signalling challenges in operational effectiveness and capital utilisation. Additionally, the latest six-month profit after tax (PAT) has declined by 52.86%, standing at ₹16.59 crores, indicating subdued profitability in recent periods.

Valuation Considerations

The valuation grade for Delhivery Ltd is deemed risky. Despite the stock delivering a robust 56.67% return over the past year as of 19 February 2026, the company’s operating profits remain negative, which raises concerns about sustainable earnings growth. The PEG ratio stands at 0.5, reflecting a low price-to-earnings growth multiple, but this is tempered by the company's negative operating profits and elevated risk profile. The debt-equity ratio remains modest at 0.17 times, which limits financial leverage risk but does not offset valuation concerns.

Financial Trend Analysis

The financial grade is flat, indicating a lack of significant improvement or deterioration in the company’s financial health. The latest quarterly data reveals that non-operating income constitutes 120.42% of profit before tax (PBT), suggesting that core business operations are underperforming and that profits are being supported by non-recurring or ancillary income sources. This reliance on non-operating income may not be sustainable in the long term and warrants caution.

Technical Outlook

Technically, Delhivery Ltd is mildly bullish. The stock has shown positive momentum in the short term, with a 7.57% gain over the past month and a 7.05% increase year-to-date as of 19 February 2026. However, the three-month and six-month returns are negative at -0.91% and -8.43% respectively, indicating some volatility and mixed investor sentiment. The mild bullishness suggests potential for short-term gains but does not fully mitigate the fundamental risks.

What This Rating Means for Investors

For investors, the 'Sell' rating signals caution. While the stock has demonstrated strong price appreciation over the past year, underlying operational challenges and valuation risks persist. The average quality grade and flat financial trend highlight ongoing concerns about profitability and sustainable growth. The mildly bullish technical indicators may offer some short-term trading opportunities, but the overall risk profile suggests that investors should carefully consider their exposure to Delhivery Ltd.

Here's How the Stock Looks TODAY

As of 19 February 2026, Delhivery Ltd remains a small-cap player in the transport services sector, with a Mojo Score of 47.0. The stock’s one-day change is negligible at +0.01%, reflecting stability in recent trading. Over the past year, the stock has delivered a substantial 56.67% return, outperforming many peers in the sector. However, this price performance contrasts with the company’s operational metrics, which show flat or declining profitability and a reliance on non-operating income.

The company’s debt-equity ratio of 0.17 times indicates a conservative capital structure, which may provide some buffer against financial distress. Yet, the low ROE and shrinking PAT highlight challenges in generating shareholder value. Investors should weigh these factors carefully when considering the stock’s future prospects.

Sector and Market Context

Delhivery Ltd operates within the transport services sector, a space characterised by intense competition and evolving logistics demands. The company’s small-cap status means it faces challenges in scaling operations and competing with larger, more established players. The sector has seen mixed performance recently, with some companies benefiting from increased e-commerce activity while others struggle with cost pressures and operational inefficiencies.

Given these dynamics, Delhivery’s current financial and operational profile suggests that it has yet to fully capitalise on sector tailwinds. Investors should monitor the company’s ability to improve profitability and operational efficiency before considering a more favourable rating.

Investor Takeaway

In summary, Delhivery Ltd’s 'Sell' rating by MarketsMOJO reflects a balanced view of its current challenges and potential. The stock’s recent price gains are encouraging but are tempered by weak profitability metrics and valuation risks. The average quality and flat financial trend grades underscore the need for caution, while the mildly bullish technicals offer limited optimism for short-term price movements.

Investors should approach Delhivery Ltd with prudence, considering the company’s fundamental weaknesses alongside its market performance. Those seeking exposure to the transport services sector may prefer to evaluate alternative stocks with stronger financial health and clearer growth trajectories.

Summary of Key Metrics as of 19 February 2026:

• Mojo Score: 47.0 (Sell Grade)
• Return on Equity (ROE): 0.45%
• Profit After Tax (Latest 6 months): ₹16.59 crores, down 52.86%
• Debt-Equity Ratio: 0.17 times
• Non-Operating Income as % of PBT: 120.42%
• Stock Returns: 1Y +56.67%, 6M -8.43%, 1M +7.57%

These figures illustrate the mixed signals investors face when analysing Delhivery Ltd today.

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