India's Mahindra Logistics Q4 loss widens on subdued volume growth

Mahindra Logistics

22/04/2024 13:32

April 22 (Reuters) - India's Mahindra Logistics  MALO.NS  reported a fifth straight quarterly loss on
Monday, hurt by subdued volume growth at its mainstay business of supply chain management.
    Consolidated net loss for the logistics arm of Mahindra Group stood at 128.5 million rupees ($1.5 million) in
the quarter ending March 31, compared with a loss of 8.2 million rupees a year ago. 
    The company declared a dividend on 2.5 rupees per share. 
    For further results highlights, click (Full Story)
    
    KEY CONTEXT   
    Logistics companies expect to see a muted fourth quarter as activity slowed ahead of general elections in India.
    Demand slowdown in key manufacturing sectors like auto and industrial goods directly impacts third-party
logistics companies. 
    Mahindra Logistics, which makes more than 90% of its revenue from supply chain management, has 80% of this
revenue flowing in from automobile segment. 
    While diesel and aviation turbine fuel (ATF) prices declined 2% and 7%, respectively, year-on-year in the fourth
quarter, this did not offset the impact of muted volumes. 

    
    PEER COMPARISON
    
                                       Valuation (next 12    Estimates               Analysts' sentiment
                                            months)          (next 12    
                                                              months)    
                         RIC              PE   EV/EBITDA    Revenue      Mean      # of      Stock to       Div
                                                            growth       rating*   analysts  price          yield
                                                                                             target**       (%)
 Mahindra Logistics Ltd   MALO.NS       72.33  10.15           14.75     Hold            10      1.17           0.55
 VRL Logistics Ltd        VRLL.NS       26.91  11.34           14.86     Buy              9      0.76           0.90
 Transport Corporation    TCIL.NS       16.98  12.99           12.79     Strong           4      0.84           0.82
 of India Ltd                                                            Buy                                
 Blue Dart Express Ltd    BLDT.NS       38.05  16.80           11.26     Hold             6      0.86           0.48
 

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above
the PT
    
    JANUARY-MARCH STOCK PERFORMANCE 
    
   
 
    
-- All data from LSEG

-- $1 = 83.3650 Indian rupees

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JAN-MARCH STOCK PERFORMANCE    https://tmsnrt.rs/3w2NOaY
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 (Reporting by Anisha Ajith in Bengaluru)
 ((anisha.ajith@thomsonreuters.com;))