Motilal Oswal's research report on Mahindra Logistics
MLL delivered a revenue growth of 10% YoY in 4QFY22 (6% below our estimate), driven by 25% growth in the non-Auto vertical. The Auto segment reported flattish growth YoY. EBITDA margin stood at 5.1%, which was higher than our estimate of 4.7%. The improvement was due to optimization of its contract workforce and improvement in utilization levels in its Warehousing business. Margin could have been better if it wasn't impacted by certain one-time costs related to the starting of some key projects. We raise our FY24 EPS estimate by 4% to factor in an improved margin outlook in the Supply Chain segment. The Warehousing segment is expected to see improved profitability as utilization picks up further.
We maintain our Neutral rating, with revised a TP of INR540/share (35x FY24E EPS).
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