Buy VRL Logistics; target of Rs 840: Motilal Oswal

Motilal Oswal is bullish on VRL Logistics recommended buy rating on the stock with a target price of Rs 840 in its research report dated May 26, 2023.

Broker Research

May 29, 2023 / 13:32 IST

buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on VRL Logistics

We recently hosted VRL Logistics Ltd (VRLL) for an NDR. The key highlights are as follows: VRLL has successfully transitioned into a pure play goods transport (GT) player, with a strategic focus on the highly profitable LTL segment. The addition of new branches has significantly contributed to tonnage growth. In FY23, VRLL expanded its branch network by adding 184 new branches. As customers seek a reliable and efficient logistics partner that can cater to their transportation needs across the country, VRLL is well positioned to capture a larger customer base. The customer base of the company has increased to 0.8m in Mar’23 from ~0.7m in Mar’22. Additionally, VRLL is likely to gain market share from smaller unorganized competitors due to increasing compliance requirements.

Outlook

Going forward, we expect VRLL to benefit from the growth opportunity in the LTL business and from the extensive branch additions in new geographies. We expect VRL to clock revenue/ EBITDA/PAT CAGR of 19%/25%/34% over FY23-25. The stock trades at 22x FY25E EPS. We reiterate our BUY rating, with a TP of INR840 (25x FY25E EPS).

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