Neutral Mahindra Logistics; target of Rs 470: Motilal Oswal

Motilal Oswal's research report on Mahindra Logistics

Mahindra Logistics Ltd. (MLL) reported a 17% YoY revenue growth to INR13.3b in 3QFY23 (in line). EBITDA increased 38% YoY to INR627m (v/s our estimate of INR668m). EBITDA margin came in at 4.7% (v/s our estimate of 5.2%; +70bp YoY/-40bp QoQ). EBITDA margin was hit by inflationary environment and muted growth in e-commerce business. APAT decreased 21% YoY to INR14m (against our estimate of INR151m). During the quarter, MLL Express Services Pvt Ltd (MESPL) completed the acquisition of the B2B express business from Rivigo Services Pvt Ltd. MESPL reported revenue of INR450m in 3QFY23 and incurred a loss of INR110m. PAT for the quarter, without the impact of Rivigo acquisition, stood at INR120m v/s INR10m during 3QFY22.

Outlook

We reiterate our Neutral rating with a revised TP of INR470 (based on 35x FY24E EPS).

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Mahindra Logistics - 01 -01-2023 - moti