Global brokerage Jefferies has maintained an 'Underperform' rating on Delhivery Ltd. with a price target of ₹390 per share, implying a potential downside of about 7% from Monday's closing price. The cautious stance stems from rising competitive pressure from e-commerce platform Meesho's rapidly scaling in-house logistics arm, Valmo.

Key Concerns from Meesho's DRHP

Jefferies highlighted that Meesho's draft IPO documents reveal a sharp increase in the company's reliance on Valmo, which operates at lower shipment costs compared to established third-party logistics (3PL) providers. These cost savings are being passed on to sellers, underscoring the critical role of logistics efficiency for marketplaces.

This trend of increasing insourcing poses a direct risk to Delhivery's core Express Parcel business, which contributes roughly 60% of its FY25 revenue.

Valmo's Rapid Scale

Launched to improve delivery efficiency and reduce dependency on external partners, Valmo has grown swiftly. As of September 2025, it operates through 18,000 active logistics providers and 1,02,000 delivery agents across India, maintaining an asset-light model. In FY25, Meesho shipped 1.59 billion orders, of which 763.5 million (about 48%) were handled by Valmo.

Stock Performance

Despite the bearish call, Delhivery's shares were trading relatively flat, down 0.38% at ₹416 on the day. The stock remains up nearly 20% year-to-date in 2025.