Buy Mahindra Logistics; target of Rs 562: Sharekhan

Sharekhan's research report on Mahindra Logistics

MLL reported better-than-expected revenue for Q3FY2021, while net profit came in lower than estimate on account of higher depreciation and interest charge. The company saw accelerated demand in both auto and consumer space, which is expected to sustain going ahead. The company continued to add new clients and has added 0.9msf warehousing space during Q3. MLL’s has ventured into last-mile small package delivery through EVs. The business is expected to scale up over 2-3 years and has revenue potential of Rs. 100 crore-150 crore.

Outlook

We retain Buy on Mahindra Logistics Limited (MLL) with a revised PT of Rs. 562, considering strong net earnings growth outlook over FY2021E-FY2023E.

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