Buy Mahindra Logistics; target of Rs 560: Sharekhan

Sharekhan's research report on Mahindra Logistics

Consolidated revenue stayed in-line, led by healthy growth in the standalone business and sharp recovery in freight forwarding. Lower OPMs in standalone and express losses led to a miss on consolidated operating and net profit. Weak demand and high competitive intensity in the express business are likely to challenge EBITDA breakeven by Q4FY2025. However, it remains steadfast in turning around the express business. Order intake remained healthy at Rs. 200 crore annualised during Q2, sustaining momentum of new order intake of Rs. 210 crore annualised in Q1.

Outlook

We retain BUY on Mahindra Logistics Limited (MLL) with a revised PT of Rs. 560, factoring in downwardly revised estimates, while it remains on a growth path.

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