Mahindra Logistics Ltd. share price target

We visited the multi-tenanted BTS facility of Mahindra Logistics (MLL) in Luhari, Haryana. Two blocks have come up (FC + DC for three clients and a FC for Amazon) with one more block under construction. Three blocks put together have an area of 1.4mn sqft. The entire 1.4mn sqft has been contracted out to customers. Bajaj Electricals contributed ~70% of the volumes in the first block of ~0.5mn sqft, which we visited.

TCI Express is a leading asset light B2B (95% of revenues) express logistics company with 28 sorting centres, 800+ owned pan-India centres covering 40000 pick-up and delivery points...

Despite decent revenues, margins were impacted by a slowdown in the Auto sector, seasonal manpower costs, and start-up costs for new projects. We lower our FY23E/FY24E EPS estimate by 23%/18% to factor in the impact of lower-than-expected profitability going forward. The Warehousing segment is expected to see gradual improvement in profitability going...

We released our Logistics thematic report recently, wherein we have stressed on the growth potential of the Indian logistics sector and the upcoming opportunities for value added services players like Mahindra Logistics (MLL). We had assigned a Neutral rating to MLL, due to: a) near to medium term growth challenges in the Auto sector, b) owing to its rich valuation. The Auto sector has been facing challenges due to semiconductor shortages, which is impacting Auto production and the requirement for Logistics activity. However, non-Auto verticals like Consumer and e-commerce are expected to...

MLL's topline grew by 22% YoY (+17% QoQ) to ~INR10.2b in 2QFY22, driven by the Supply Chain segment (+22% YoY; 96% of revenue). Enterprise Mobility grew 42% YoY (4% of revenue). EBITDA margin came in at 4.9% (+43bp YoY; -24bp QoQ) and was impacted by a sharp increase in fuel cost. Higher depreciation expense and lower other income led to a 35% YoY decline in PAT to INR 98m....

PAT de-grew 27% QoQ to | 9 crore (vs. expected | 3 crore), as operating performance was impacted by higher interest and depreciation expense What should investors do? Continued momentum in the non-auto segment of MLL will drive higher contribution from value added services (sorting, bill processing...

Strong Q1 operating income of Rs 164mn in a challenging quarter vs. a loss of Rs 206mn in Q1FY21

Mahindra Logistics (MLL) continued to report its normalised performance at pre-Covid levels in its auto segment (28% YoY growth due to weak base and QoQ largely flat). However, the non-auto segment declined QoQ (down 16% QoQ, up 29% YoY due to weak base), which the management has clarified was affected by seasonality (non-festive season), indicating the growing importance of e-commerce and flex-warehousing solutions in its revenue mix. Enterprise mobility solutions continued to face headwinds due to lower utilisation of buses by companies, as most employees continued to work...

In its Q4FY21 earnings call, Mahindra Logistics' (MLL) management spoke about its vision to triple revenue by FY26, driven by formalisation, auto recovery, service expansion and integrated solutions to customers.

Mahindra Logistics' (MLL) Q4FY21 net income increased 58% YoY on 28% revenue growth in the SCM segment, even as the enterprise mobility business remained weak.

Strong Auto recovery and benefits out of FY20 orders Mahindra Logistics' (MAHLOG) Q3FY21 consolidated revenue grew by a strong 15% YoY to `10,467mn led by SCM (+24%YoY) while the mobility segment lagged (60% YoY). The revenue were driven by recovery in auto, mainly tractor demand , benefit of new contract wins contribution of top-20 clients now below 60%, support of festive demand and further sustained growth in non-M&M; side despite some impact of supply-chain disruption in the cross-border consumer...

During Q3, the company saw peak volumes in processing and fulfilment solutions, higher transportation volumes and also, focused on customers with a pan-India presence, servicing them with flex solutions. It also developed and expanded presence in grocery and essentials. On the auto front, MLL saw higher ton-mile coverage and strong growth due to festive season, good Kharif output. Also, e-commerce, consumer pharma, FMCG and apparels continued to show double digit gains during the quarter. However, during the quarter, the company also saw some of its gains getting...

Mahindra Logistics' (MLL) Q3FY21 consolidated revenue grew by a strong 15% YoY led by SCM (+24%) while the mobility segment lagged (60%).

Higher SCM revenues as ramp up seen in E-commerce and Consumer segment Mahindra Logistics (MLL) reported strong sequential numbers on the back of higher SCM revenues and income-tax refunds. Supply Chain Management (SCM) segment reported a revenue growth of 6% YoY in Q2FY21 as ramp-up in E-commerce and Consumer segment (constituting 50% of Non-M&M; SCM revenues) drove 17% YoY growth in Non-M&M; non-automotive segment. Expect recovery in automotive demand from 2HFY21 and scale up of new contracts won...

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.