Neutral Mahindra Logistics; target of Rs 300: Motilal Oswal

Neutral

Motilal Oswal's research report on Mahindra Logistics

Mahindra Logistics (MLL)’s revenue grew ~8% YoY to INR15.7b in 4QFY25, in line with our estimate. EBITDA margin came in at 5% (+110bp YoY and +30bp QoQ) vs. our estimate of 4.7%. EBITDA rose ~37% YoY to INR777m (in line). Adjusted net loss narrowed to INR68m in 4QFY25 from INR128m in 4QFY24 (our estimate of INR29m profit). During FY25, revenue stood at INR61b (+11% YoY), EBITDA stood at INR2.8b (+24% YoY), EBITDA margin came in at 4.7%, and adj. loss stood at INR359m (vs. loss of INR586m in FY24). Supply Chain management recorded revenue of INR14.9b (+8.6% YoY) and EBIT loss of INR4m. Enterprise Mobility Services (EMS) reported revenue of INR800m (+2% YoY) and EBIT of INR13.3m. Mr. Rampraveen Swaminathan, MD and CEO, has resigned. The company has appointed Mr. Hemant Sikka as MD & CEO (Designate) from 22nd Apr’25 to 4th May’25 (both days inclusive).

Outlook

We estimate a CAGR of 24%/37% in revenue/EBITDA over FY25-27. Reiterate Neutral with a revised TP of INR 300 (premised on 11x FY27 EPS).

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Mahindra Logistics - 22042025 - moti