(Bloomberg) -- Delivery Hero SE is on the verge of getting booted from Germany’s DAX Index this month, less than two years after gaining entry, as the market meltdown costs the benchmark some of its new-economy shine.

The food-delivery company probably will be replaced by Beiersdorf AG, the maker of Nivea skin cream which would re-enter the DAX just one quarter after getting kicked out, according to JPMorgan Chase & Co. analyst Pankaj Gupta. 

The change would represent a step back in the DAX’s attempt to transform itself into an index that houses more modern and growth-focused companies. The benchmark moved in that direction in September, when it expanded to 40 stocks from 30 to include more highly valued companies such as online retailer Zalando SE and food-delivery firm HelloFresh SE. Shares of both companies are down almost 50% this year.

A subsequent quarterly review saw the DAX tilt back toward old-economy stocks including Daimler Truck Holding AG and insurer Hannover Re. The index has declined 8.8% including dividends in 2022, underperforming the Stoxx Europe 600 Index’s 7.6% loss with dividends.

For Delivery Hero, the exclusion could deal another blow to its stock at a time when the company is struggling with lackluster demand in the post-Covid economic reopening. Its shares have cratered more than 80% in the past two years because of relentless competition and inflation that’s squeezing customers’ already tight budgets. 

Rising interest rates and this year’s rotation out of shares of high-growth companies have worsened the outlook for the stock, which last month briefly traded below its 2017 initial public offering price.

Deutsche Bank strategists said this month that HelloFresh could also be a potential exit candidate, while defense manufacturer Rheinmetall AG could gain entry.

The changes are set to be announced late Friday by index compiler Qontigo, a subsidiary of Deutsche Boerse AG. They will go into effect June 20 and will also prompt trades by money managers who track the index. 

The benchmark includes the 40 largest German listed companies that meet criteria for profitability and corporate governance.

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