Q3FY21 Result Update - Mahindra Logistics - ICICI Direct

In Q3FY21, MLL embarked on a path of broad based growth across segments (E-Way bill generated in October, November, December saw growth of 17%, 5%, 17% respectively). Revenues grew 15% YoY to Rs. 1047 crore, led by 24% growth in the SCM segment to Rs. 1010 crore. Enterprise mobility services de-grew 60% to Rs. 37 crore. EBITDA margins expanded 39 bps to 5.1% due to lower employee and other expense. Subsequently, EBITDA grew 25% to Rs. 53 crore. However, reported PAT grew 17% YoY to Rs. 18 crore, mainly due to lower other income (Rs. 2 crore vs. estimated Rs. 6 crore and Rs. 2 crore in Q3FY20).

Valuation & Outlook

The management is focused on a broader strategy to focus on building integrated solutions, expand on targeted service lines (including line haul, first mile, last mile, freight forwarding, etc), providing customers with multi-modal offering and invest in digitisation and innovation. MLL has been strengthening its cash position in the b/s during the pandemic. Also, with a changing client profile (addition of non-auto clients), MLL has been able to leverage the situation by enhancing high margin warehousing, value-added services component in its revenue mix. We remain positive on MLL's future prospects and faster growth in its core segments. We maintain our BUY recommendation with a revised target price of Rs. 550 (earlier Rs. 430).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MahindraLogistics_Q3FY21.pdf

Shares of Mahindra Logistics Ltd was last trading in BSE at Rs.456.45 as compared to the previous close of Rs. 458.5. The total number of shares traded during the day was 14952 in over 925 trades.

The stock hit an intraday high of Rs. 477.85 and intraday low of 452.3. The net turnover during the day was Rs. 6903174.

Source : Equity Bulls

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