Buy Mahindra Logistics; target of Rs 550: ICICI Direct

ICICI Direct's research report on Mahindra Logistics

Mahindra Logistics is an end-to-end 3PL logistics solution provider, from performing milk run to in-factory logistics, warehousing to first mile and last mile logistics. Serves over 400 customers via its two business segment: supply chain management [(SCM), 96% of revenues] and enterprise mobility • Revenues from Mahindra comprise 52% of SCM revenues (FY21) while the rest is contributed by non-Mahindra.

Outlook

We maintain BUY due to long-term growth drivers in MLL. We value the stock at Rs 550 i.e. 37x P/E on FY24E EPS.