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Entry Price

5,475.00

Target

6,300.00

Recommend Date

12-03-2021

Return

15.07 %
BUY

Date : 12-03-2021

BlueDart has been reporting a stellar uptick in performance post Q1, registering revenue growth of 8% and 21% YoY in Q2 and Q3, respectively. Shift in consumer buying behaviour and consumption patterns, led to higher growth in the B2C and B2B segments. Due to the strong growth, the utilisation of assets remained high (85%+). The revenue performance was further assisted by expansion in EBITDA margins by 1880 bps and 780 bps to 26.4% and 24.3% in Q2 and Q3, to yield an absolute EBITDA of | 229 crore (up 3x YoY) and | 252 crore (up 77% YoY), respectively. The company was able to maintain its EBITDA margins at 24-26%, led by cost efficiencies and higher operating leverage. BlueDart has also acquired two Boeing 757- 200 aircraft to derive economic value in the long run.