Weak volume estimates a speedbreaker for Blue Dart; trend may not improve

The company indicated that it will take close to two years for capital investments as well as expansion to contribute to the top line and earnings, materially

The stock of Blue Dart Express has shed 5.7 per cent in the past one month, sharply underperforming the Sensex, which fell 1 per cent during the same period.

The weak earnings outlook, on the back of margin headwinds, has been weighing on the stock. The trend is unlikely to improve in the near term, which could keep the stock under pressure.

Among factors keeping the margin outlook gloomy for the company are high investments to expand geographical reach, market share loss mainly in the B2C or e-commerce segments, and the overall economic slowdown.

Analysts at ICICI Securities, who expect margin expansion for