Delhivery faces downside risk as Meesho ramps up low cost in-house logistics, Jefferies warns

Global brokerage firm Jefferies has maintained an 'Underperform' rating on Delhivery and assigned a price target of ₹390 per share, signalling a possible downside of 7% from Monday's close.

The call comes as Meesho's DRHP highlights a sharp rise in the company's in-house logistics through its platform Valmo, which is operating at lower shipment costs compared to scaled third-party logistics providers. Meesho is also passing on these efficiency gains to sellers, underscoring how critical logistics costs are for marketplaces.

Jefferies cited that increasing insourcing poses a risk to Delhivery's Express Parcel business, which accounts for about 60% of its FY25 revenue.

Meesho launched Valmo to boost delivery efficiency and reduce reliance on external logistics partners. The unit has scaled rapidly and now operates through 18,000 active logistics providers and 1,02,000 delivery agents across India as of September 2025, while maintaining a completely asset-light model among major e-commerce and logistics players.

Meesho shipped 1.59 billion orders in FY25, with 763.5 million handled by Valmo and the rest fulfilled through third-party partners.

Delhivery shares are trading 0.38% lower today at ₹416, though the stock remains up nearly 20% so far in 2025.