Share of Mahindra Logistics Limited (MLL) has delivered 192 per cent return to its shareholders in the last 12 months. The share stood at Rs 276.7 on July 27, 2020. It has zoomed to Rs 807.30 today, translating into gains of 192 per cent during the period. An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 14.58 lakh today.
The stock rose 20 per cent to hit an all-time high of Rs 807.3 on BSE today. It ended 11.15 per cent higher at Rs 748.20 against the previous close of Rs 673.15. It has been gaining for the last 7 days and has gained 31.9 per cent during the same period.
With a market capitalisation of Rs 5,370 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
According to MarketsMojo, the technical trend has improved from Mildly Bullish on July 13, 2021, and the stock is technically in a Bullish range now and has generated a 26 per cent return since then. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, DOW and OBV. Also, the company has high institutional holdings at 32.29%.
The company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.02 times. However, it noted that the valuation is very expensive right now.
Mahindra Logistics' revenue grew 113 per cent to Rs 873 crore in Q1 of FY22 against Rs 410 crore in the same quarter of the previous fiscal. The company posted a net profit of Rs 9.35 crore compared to a loss of Rs 15.81 crore in the year-ago period.
Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, said, "Our strong focus on customer retention, new account acquisition and cost reduction helped us offset these challenges".
Swaminathan said the implementation of the firm's strategic initiatives continued through the quarter and Mahindra Logistics anticipates a strong uptick in the economic activity in the rest of the year.
"MLL’s operational performance is on improving trend which is expected to further improve with rising non-M&M revenues, increasing warehousing space under management, rising value-added services and higher absorption of fixed costs with increase in revenues. The company’s five-year revenue target of Rs. 10,000 crore remain intact with warehousing services including value-added services expected to comprise 30%," Sharekhan said in a result update.
The brokerage house noted that the company continues to generate strong cash flows at the same time maintaining its asset-light model. Further, MLL’s venture into last-mile small package deliveries through EV would capture the strong growth in the express delivery segment.
"We expect strong 56% CAGR in net earnings over FY2021E-FY2024E. We continue to remain optimistic on the strong growth potential that lies ahead for MLL," it added.
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