India's Mahindra Logistics slides further on slowdown concerns

Mahindra Logistics

03/02/2023 06:08

** Shares of Mahindra Logistics Ltd  MALO.NS  fall as much
as 2.14% to 447.45 rupees, their lowest since June 27
    ** Stock down for a third straight session, shedding nearly
5% during the period
    ** Co reported a 21% fall in third-quarter consolidated net
profit after tax, post market hours on Feb. 1 
    ** Kotak Institutional Equities downgrades stock to "reduce"
from "add", citing weak demand environment
    ** Gains from acquisition of cargo service firm Rivigo are
expected to be visible only after H1FY24 - brokerage firm 
    ** Brokerage estimates weakness in e-commerce-led demand to
continue till the end of 2023
    ** Motilal Oswal Financial Services reduces target price on
MALO to 470 rupees from 510 rupees and keeps "neutral" rating
    ** MALO will face margin weakness due to losses in B2B
(business-to-business) express delivery business and rising
competition in 3PL (third-party logistics) business - Motilal
Oswal
    ** More than 57,300 shares change hands as of 11:22 a.m.
IST, 1.2x the 30-day avg of about 49,700 shares
    ** Of the 11 analysts tracking co, seven maintain "buy", one
suggests "sell" and three recommend "hold"; median TP is 540
rupees - Refinitiv data
    ($1 = 82.1300 Indian rupees)
 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; Mobile:
+919769003463))