Mahindra Logistics Ltd. share price target

Mahindra Logistics’ (MLL) Q1FY24 EBITDA was in line with our estimates; however, it was 3.3% below consensus estimates. Key points: 1) Overall revenue grew 7.8% YoY led by growth in both SCM and mobility businesses on the back of improved performance in 3PL and network services; 2) freight-forwarding business continues to face headwinds YoY.

Mahindra Logistics’ (MLL) Q4FY23 EBITDA of Rs637mn (up 16% YoY) was in line with our estimates; however, it missed street estimates by 7%. Key takeaways include: 1) Mixed quarter for 3PL division as automotive and manufacturing sectors contributed to growth while consumer and e-commerce lagged.

Mahindra Logistics’ (MLL) Q3FY23 EBITDA was slightly ahead of our estimates; however, PAT was lower owing to higher interest cost. Key takeaways include: 1) Mixed quarter for 3PL division as automotive and manufacturing contributed to growth while consumer

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....