Mahindra Logistics Ltd. share price target

Buoyed by traction in key client segments e-commerce, consumer, pharma, tractors Mahindra Logistics' (MLL) topline decline eased to 2% YoY, ahead of our estimate of a 14% drop.

Social distancing norms have made it challenging for companies to maintain turnaround times & also led to higher logistics costs. Specialised 3PL companies in such environments can provide reduced logistics costs, better turnaround time to each client on greater efficiency, lower capex, better utilisation level vs. each company's internal logistics operations. MLL ended with ~400 clients in FY20 and expects 30-40 client additions each year. SCM segment sees normalised performance A strong QoQ pullback was seen across segments (PTS is still a laggard)...

Mahindra Logistics' (MLL) Q4FY20 print was weak on account of the national lockdown and auto industry slowdown.

New business landscape looks promising for 3PL companies With introduction of newer norms (social distancing) and regulations shoved into the sector, it is becoming challenging to maintain turnaround times for customer for various companies, with increased labour costs. A 3PL company in such an environment can provide reduced logistics costs, better turnaround and also reverse logistics to each client company due to greater efficiency, lower capex and running the operations at better utilisation levels compared to each company internal logistics operations. MLL ended with...

MLL is one of the major players in the rapidly growing Indian 3PL industry (~ US$6 billion in FY17), which has been growing at a CAGR of 18-20% over the last few years. The growth is driven by higher gamut of logistics operations being outsourced by manufacturers to 3PL players. MLL possesses key success enablers like bouquet of end-to-end logistic services, asset light model and presence in high growth industries along with support...

Mahindra Logistics (MLL) reported below expected performance in Q2FY20, with consolidated revenue/EBITDA (adj. for IND-AS 116) declining 8%/28% YoY.

Scaleable asset light model amid huge market opportunity MLL is one of the major players in the nascent but rapidly growing Indian 3PL industry (~US$6 billion in FY17), which has been growing at a CAGR of 18-20% over last few years. The growth is driven by a higher gamut of logistics operations being outsourced by manufacturers to 3PL players. MLL possesses key success enablers like bouquet of end-to-end logistic services, asset light model and presence in high growth industries along with support of anchor client (M&M;) enabling it to grow in line with industry growth....

Increased revenue share from the non-Mahindra business (especially FMCG, e-commerce) would enable higher warehousing revenues, providing better gross margins and translating into enhanced profitability for the company. Rising importance of services like inbound, outbound and in-factory logistics would enable 3PL players to get a higher wallet share of the clients business with increased client dependency. We maintain our BUY rating with a...

Banking: Tax cut to bolster earnings. Midcaps: Tax cut benefits capped by demand headwinds. MAHLOG: Meeting takeaways: Reiterates growth plan; technology to the fore. Banking Credit Tracker: Business momentum remains sluggish

We interacted with Mahindra Logistics' (MLL) CEO designate Rampraveen Swaminathan who will assume the role of CEO from Oct 1.