Shares of logistics provider Delhivery fell over 1% to ₹412.90 in early trade on December 2 after Jefferies highlighted a growing risk from e-commerce platform Meesho’s increasing reliance on its own in-house logistics arm, Valmo.

Jefferies' 'Underperform' Rating and Key Concern

Jefferies maintained an 'Underperform' rating on the stock with a target price of ₹390, implying a potential downside of nearly 7% from its previous close. The brokerage pointed to Meesho's draft IPO papers, which revealed a significant shift in its logistics strategy.

During the April–June quarter, Meesho shipped approximately 29.6 crore orders through Valmo, compared to only 18 crore orders through third-party express delivery partners like Delhivery. Jefferies noted that Valmo now handles about 50% of Meesho's shipments, a sharp departure from earlier years when most orders were outsourced.

Given that Jefferies estimates Meesho accounted for roughly 16% of Delhivery’s FY25 revenue, this strategic shift toward insourcing poses a meaningful risk to Delhivery's core express parcels business.

Meesho IPO Details

Meesho, the SoftBank-backed e-commerce platform, is set to launch its ₹5,421-crore IPO on December 3. The price band has been fixed at ₹105–111 per share, valuing the company at nearly ₹50,096 crore at the upper end. The offer comprises a fresh issue of ₹4,250 crore and an offer for sale of up to 10.55 crore shares by existing shareholders.

Delhivery’s Recent Performance

Delhivery shares have declined nearly 12% in the past month but are up over 13% in the last six months. Year-to-date in 2025, the stock has gained more than 19%. The stock currently trades at a high price-to-earnings (P/E) ratio of around 158.