Hold Mahindra Logistics; target of Rs 502: Sharekhan

Sharekhan's research report on Mahindra Logistics

MLL reported lower-than-expected performance for Q3FY2023 owing to weak performance in the freight forwarding business and the consolidation of B2B express business of Rivigo. MLL is expected to focus on the turnaround and consolidation of Rivigo during FY2024, while overall earnings acceleration is expected from FY2025 onwards. The company’s freight forwarding business is expected to recover from weak global pricing and demand environment over the next six months.

Outlook

We downgrade Mahindra Logistics Limited (MLL) to Hold with a revised PT of Rs. 502, owing to a downward revision in estimates led by Rivigo consolidation and increased leverage.

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Mahindra Logistics - 01 -01-2023 - khan