Buy Mahindra Logistics; target of Rs 455: Sharekhan

Buy

Sharekhan's research report on Mahindra Logistics

MLL reported lower-than-expected revenues while OPM surprised positively led by core business. Rivigo consolidation leads to net loss. The company expects slower growth run-rate in near term owing to slower growth in auto and gradual pick up expected in e-Commerce and freight forwarding businesses. The express business is targeted for EBITDA and PAT breakeven in Q3FY2024 and Q4FY2024 end respectively. The first phase of 0.5 msf of 1 msf Chakan warehousing park is expected by FY2024 end.

Outlook

We retain a Buy on Mahindra Logistics Limited (MLL) with a revised PT of Rs. 455, considering favourable valuation which factors in near term demand weakness.

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Mahindra Logistics - 26 -04 - 2023 - khan