Neutral on Mahindra Logistics, price target Rs 500: Motilal Oswal Securities

Motilal Oswal Securities has a neutral call on Mahindra Logistics with a target price of Rs 500. The current market price of Mahindra Logistics Ltd. is Rs 443.

Mahindra Logistics, incorporated in 2007, is a mid-cap company (having a market capitalization of Rs 3160.92 Crore) operating in the logistics sector.

Mahindra Logistics major products/revenue segments include services rendered for the year ending March 31, 2021.


For the quarter ended 31-12-2021, the company reported consolidated total revenue of Rs 1120.50 Crore, up 9.74% from last quarter, total revenue of Rs 1021.07 Crore and up an increase of 6.87% compared to the same quarter of last year. Total income of Rs 1048.51 Crore. The company reported a net profit after tax of Rs 5.07 Crore last quarter.

Investment rationale
The long-term strategic roadmap is in place to become a big name in the logistics industry with a turnover of around Rs 100 billion. Strategic acquisitions, presence in value-added segments and winning new customers bode well for Mahindra Logistics. In the short term, challenges regarding: a) slowdown in the agricultural segment, b) rising fuel prices and c) start-up costs related to the Bajaj account remain, MOSL said.

Promoter/Fii Holdings
The promoters held 58.18% of the company’s capital as of December 31, 2021, while the FIIs held 21.66% and the DIIs 11.09%.

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