Delhivery IPO: How good is it?

In our previous part of Delhivery IPO story, we read about the key details of the IPO along with important information about the logistics major. Here we will answer some questions about Delhivery and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? No. The company posted negative earnings before tax of Rs 1,017 crore in the last 12 months. 2) Will Delhivery be able to scale up its business? Yes. The company has planned to use the issue proceeds to scale up the existing business by setting up offices and growing the support team. It is also trying to find inorganic growth opportunities to expand the business. 3) Does the company have recognisable brands truly valued by its customers? Yes. Although brand recognition is not present in the B2B segment, the company has managed to gain a reputation among its customers, such as large e-commerce operators. 4) Does Delhivery have high repeat customer usage? Yes, many of its customers have been associated with the company for many years and use multiple services. 5) Does the company have a credible moat? No. Though the company's huge presence can be considered a moat, its direct competitor, Mahindra logistics, also has almost the same level of presence. Sufficient spending can bring them to the level of Delhivery. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? Yes. Although the company provides cross-border services that involve global clients, the revenue derived is not significant. 7) Is the business of the company immune to easy replication by new players? Yes. It is extremely