Blue Dart Express surged today post-Q4 results following its attractive valuation.
The battered stock of the leading courier company was up by 7.2% at Rs 59.65 on the BSE in afternoon trades. The stock was near the day's high of Rs 59.90. But the volumes in the stock were thin, with about 2,200 shares changing hands by 13:50 IST.
The Blue Dart stock was near its 52-week low level of Rs 53 just around the time of announcement of its Q3 results. The Q4 results were announced late last week on 24 April 2003. Following the results, the scrip has surged 10% in the last two sessions to the current Rs 59.65 from its close of Rs 54.20 on 24 April 2003. But the daily volumes post- results have been thin or less than 5,000 shares on the BSE. The average trading volume in the stock in the last one year was at 7,737 shares.
At the current Rs 59.65, the stock discounts its FY 2003 earning per share (EPS) of Rs 9.20 by a price to earnings (PE) multiple of 6.4.
A leading player in the domestic express cargo services industry, Blue Dart together with its wholly-owned subsidiary, Blue Dart Aviation, registered a 19% growth in net profit at Rs 21.84 crore on a top line growth of 10% to Rs 314.62 crore for the year ended March 2003. Substantial reduction in interest costs boosted the net profit. Blue Dart, on a standalone basis, registered a 17% growth in bottom line to Rs 21.08 crore on a top line growth of 9.8% to Rs 314.99 crore during the year ended March 2003. Blue Dart Aviation's net profit went up from Rs 28 lakh in FY 2002 to Rs 76 lakh in FY 2003.
The company currently has a 38% market share in the domestic market and a reliability level of 99.95% in the express industry. It hopes to increase its market share to 40% in the coming years.
Blue Dart entered into a sales alliance agreement effective 1st October 2002, with DHL Worldwide Express, to provide Blue Dart customers the advantages of DHL's global reach, unmatched cross-border specialisation, greater network flexibility and hi-tech infrastructure, in replacement of its erstwhile alliance of 18 years for international outbound deliveries of Blue Dart's international customers.
This came after Blue Dart snapped ties with international courier and long-standing partner FedEx.
A few months ago, Blue Dart entered into an interline agreement with the South African Airways. The agreement will facilitate movement of South African Airways' shipments to and from the major metros through Blue Dart's infrastructure of bonded warehouses and freighters. Blue Dart will distribute shipments of South African Airways to and from the areas in which the airline does not operate. This is Blue Dart's 20th interline agreement.
The company's board recommended a dividend of 27.5% for the year ended March 2003.
Promoter holding in Blue Dart Express has increased to 51.11% during the year against 51.07% in the previous year.
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