Buy Mahindra Logistics; target of Rs 520: Sharekhan

Sharekhan's research report on Mahindra Logistics

Consolidated revenue was marginally higher in Q4, led by healthy growth in the core standalone business and express business. One-off expenses led to a miss on operating and net level. Addition of new accounts continues while it remains steadfast on achieving EBITDA breakeven in the express business by Q2FY2025 end. Management targets Rs. 10,000 crore consolidated revenue over the next three years. For FY2025, it may see mid-teen revenue growth.

Outlook

We retain Buy on Mahindra Logistics Limited (MLL) with an unchanged PT of Rs. 520, as it remains on a growth path across businesses and achieve EBITDA breakeven in the express business.