Sharekhan has given Buy recommendation for Mahindra Logistics with a target price of Rs. 600 in its research report issued on Sep 27, 2022
Sharekhan’s research report on Mahindra Logistics
MLL acquires Rivigo’s B2B express business at an attractive valuation of 0.6x its FY2022 sales for Rs. 225 crore. Benefits to accrue from leading technology, high realisations, pan-India network, 250+ processing centres, and branches. The acquisition is in-line with MLL’s target of scaling up the B2B express business to 3x by FY2026. The loss-making acquired business is expected to turnaround by cost optimisation and scale up. MLL is also restructuring its enterprise mobility business by consolidating it under one entity (MLL Mobility), thereby enabling optimisation and scale up of operations .
Outlook
We retain Buy on Mahindra Logistics Limited (MLL) with an unchanged PT of Rs. 600.