Stocks to buy today, April 21: Shrikant Chouhan stock picks today
Delhivery – BUY
CMP – ₹463
Fair value – ₹590
Resistance – ₹450/₹440
Support – ₹485/₹495
There are also limitations to capex from tractor trailers (75 per cent salient already) and sorters (acquired through the Ecom Express acquisition). Our conversation also brought out focus on matching costs with changing utilisation in terms of employees and vehicles. The dominant share of mid-mile transportation journeys is to a destination without a stopover, benefiting from Delhivery’s mesh network structure. The endeavor is to minimize time of inventory at the gateway with an ideal time of four hours.
Growing salience of Meesho a net positive for growth even if hit rates normalise Meesho’s insourcing has meaningfully reduced over the past two quarters, leading to a large 60 per cent+ Y-o-Y growth in Express Parcel volumes in Q4FY26E. Existing hit rates of Delhivery with Meesho may not be sustained forever. We model Meesho separately inside our estimates, bringing down existing ~23 per cent hit rate of Delhivery (at ~50 per cent insourcing) to ~17 per cent (at ~57 per cent insourcing) over time.
Strong growth of Meesho’s overall volumes despite reducing hit rate implies a strong 23 per cent CAGR in Express Parcel volumes over FY2026-28. The same assumes a modest ~11 per cent CAGR in volumes beyond Meesho. We increase Delhivery stock’s fair value to ₹590 (₹570 earlier), factoring in strong EPL growth. We increase our Express Parcel estimates for Delhivery, while broadly retaining our service Ebitda assumptions. We factor in lower tax outgo based on past losses, leading to a 50-146 per cent increase in EPS estimates.
Fiem Industries (FIEM) – BUY
CMP – ₹2,255
Fair Value – ₹2,809
Resistance – ₹2,325/₹2,365
Support – ₹2,205/₹2,175
Rising LED lighting adoption in the automotive segment is expected to aid growth. LED based lamps content per vehicle are higher by ~2x-3x as compared with the halogen lamp. For FIEM, the revenue share of automotive LED lighting (as a percentage of FIEM’s total automotive lighting) has increased from ~51.7 per cent in FY24 to 59.3 per cent in FY25 and further to 63.5 per cent in 9MFY26.
FIEM enjoys long-standing relationship with key customers. In revenue terms, Honda Motorcycle and Scooter India (HMSI), TVS Motors (TVSM), Yamaha Motor India (Yamaha), Suzuki Motorcycle (Suzuki) are the company’s top four revenue contributor. FIEM has added Hero Motocorp to its customer list and is working with Hero MotoCorp on multiple new products and has the potential to scale up its business with them over the coming years.
FIEM is a well-established player in the two-wheeler automotive lighting segment, and the company is looking at leveraging its LED automotive lighting expertise and strong R&D in the four-wheeler segment. The company’s focus on the four-wheeler LED lighting segment presents a huge growth opportunity. The company generates healthy cash flows and has net cash in its balance sheet, which would help them invest in new technology and capacity. FIEM’s product portfolio is engine technology agnostic and thereby electric vehicle (EV) growth does not present any threat to the company’s business. The company valuations are reasonable.
We have a ‘Buy’ rating on the stock with a fair value of ₹2,809. We value the stock at a PE of 22x on FY28E earnings.
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Disclaimer: Shrikant Chouhan is the head of equity research at Kotak Securities. Views expressed are his own.
