Delhivery may hit a valuation hurdle amid near term concerns: Brokerages

However, Delhivery's growth opportunities, its business model and revenue trajectory are positive triggers, say brokerages

Logistics services provider Delhivery is raising Rs 5,235 crore in an initial public offer (IPO) to fund its organic and inorganic growth initiatives. The company, which is the largest integrated logistics player by revenue, is eyeing steady growth in the Indian logistics sector, as well as market-share gains in the organised space. 

While the logistics sector is expected to grow 9 per cent annually between 2019-20 (FY20) and 2025-26 (FY26) to hit $365 billion, the organised segment, which was just 3.5 per cent of the sector in FY20, is expected to grow nearly 4x the overall sector.

The share of