Sharekhan's research report on Mahindra Logistics
Our interaction with the management underscores its upbeat outlook on end-user demand in the medium-term barring e-commerce. Focus stays on margin expansion. 3PL business is expected to grow at 15-16% CAGR with focus on almost doubling share of high margin integrated 3PL revenues over the next five years. Key account downsizing in SCM has led to key learnings in terms of processes and capabilities. Express business consolidation to provide synergistic benefits.
Outlook
We upgrade Mahindra Logistics Limited (MLL) to Buy with an unchanged PT of Rs. 502, considering the recent correction led by its transition phase providing buying opportunity.
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