Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Hold Mahindra Logistics; target of Rs 330: ICICI Direct

ICICI Direct recommended hold rating on Mahindra Logistics with a target price of Rs 330 in its research report dated July 31, 2020.

August 04, 2020 / 05:41 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Mahindra Logistics

Mahindra Logistics reported 54% decline in revenue to Rs 410 crore owing to 51%, 82% decline in SCM, PTS revenues to Rs 392 crore, Rs 18 crore, respectively. PTS segment (normally ~10% of revenue) has been severely impacted owing to work from home policy adopted by corporates. However, warehousing segment continued to remain resilient and fell 11%. The company owing to its asset light model was able to reduce other expenses by 40% YoY, enabling it to restrict loss at EBITDA level to Rs 2.2 crore. Lower other income and higher depreciation & interest expense led the company to report a net loss of Rs 16 crore (I-direct estimate: loss of Rs 42 crore) vs. net profit of Rs 18.6 crore in Q1FY20.


Outlook

We remain positive on MLL’s future prospects but as the stock has rallied ~20% in last three months, we downgrade to HOLD with revised TP of Rs 330 (~30x FY22 EPS).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Aug 4, 2020 05:41 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347