Buy Mahindra Logistics; target of Rs 632: Sharekhan

Sharekhan's research report on Mahindra Logistics

Consolidated operational performance stayed in-line with estimates, led by healthy performance from core standalone business. The express business continued to post operating and net losses similar to Q4FY2024.Weak demand and a high competitive intensity in express business is likely to delay EBITDA breakeven by Q4FY2025 from earlier Q2FY2025.Order intake remains healthy at Rs. 210 crore annualised with seven key order wins during Q1.

Outlook

We retain BUY on Mahindra Logistics Limited (MLL) with a revised PT of Rs. 632, rolling forward our valuation to H1FY2027E earnings, while it remains on a growth path across businesses.