Delhivery's share price hit 10% upper circuit on Monday after brokerages shared bullish outlooks following the company's fourth quarter results announcement.

Goldman Sachs noted growth in Part Truck Load volume by 19% on an annual basis, despite weak commerce growth. Ebitda margin expansion to 2.5% was ahead of its estimate of 0.5%.

Both Citi and Investec attributed the expansion of Ebitda margin to growth in Part Truck Load volume.

Truck load volume refers to a quantity of goods which is large enough to fill a container. Part truck load is a portion of that quantity.

"In an environment where most other PTL players are struggling to grow, Delhivery posted 24% YoY rev growth. It also sharply expanded segment Service Ebitda margin to 10.8%," noted Investec.

Broader e-commerce recovery (most likely tied to urban consumption recovery) will be the "the biggest uplift" for the company, according to Citi.

A consolidating industry structure should enable tighter pricing discipline, and in turn expand margins, as per Investec.

"As we've highlighted earlier, operating leverage playing out in PTL volumes is likely more important than Express (e-commerce) driving the incremental margins, as it improves mid-mile utilisations, and sustained evidence of which over the next few quarters, would be critical for the stock, in our view," Goldman Sachs said.

The brokerage maintained a 'neutral' stance on Delhivery. While, both Investec and Citi retained 'buy' ratings.

All three brokerages have increased the target price for the company. GS has revised Delhivery's price target to Rs 325 from Rs 290, while Citi has revised TP from Rs 370 to Rs 372. Investec hiked it to Rs 430 from Rs 420.

Delhivery Reports First Yearly Profit, Q4 Bottom Line Beats Estimates

Shares of Delhivery rose as much as 9.99% to Rs 352.90 apiece to hit upper circuit, the highest level since Dec. 27, 2024. This compares to a 0.02% decline in the NSE Nifty 50.

The stock has risen 1.01% on a year-to-date basis, and is up 23.04% in the last 12 months. Total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 65.56.

Out of 24 analysts tracking the company, 19 maintain a 'buy' rating and five recommend a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 15%.

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