ICICI Securities maintains buy on Mahindra Logistics, target price Rs 462

ICICI Securities has maintained its buy rating on Mahindra Logistics in the long term with a target price of Rs 462. The stock ended 4.81% to Rs 370.30 on Friday while BSE Sensex closed 246.32 points up at 39,298.38.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 899.03 crore, down -11.40% from last quarter sales of Rs 1014.68 crore and down -3.14% from last year same quarter sales of Rs 928.19 crore. The company has reported net profit after tax of Rs 18.68 crore in the latest quarter.


Investment Rationale

Better service mix should aid in higher gross margins, while increasing automation should lead to both better service offerings and operating leverage, according to the brokerage. The management continues to wait for a reversal in slowdown in the auto segment, but at the same time, is confident of growing in other verticals like e-commerce, pharmaceuticals and consumer, it added.