Mahindra Logistics Ltd is a leading integrated logistics & mobility solutions provider to diverse industry verticals such as Automotive, Engineering, Consumer Goods, Pharmaceuticals, Telecommunications, Commodities, and E-commerce. Company’s key services include Contract Logistics where it provides services such as Transportation, Warehousing, Stores & Line Feed, Fulfillment, and VAS services to various industries, Last-Mile Delivery where it facilitates delivery to customers of major e-commerce players and builds India’s largest 3W EV fleet, B2B Express which overs B2B express and PTL transportation with Pan India coverage. It also provides Freight Forwarding services with Cross-border freight forwarding business with expertise in ocean as well as air freight. The company has also started international air charter operations in Dubai. Under its Mobility solutions company provides Enterprise Mobility Services, Cab on Demand Services, Airport & Outstation, Upkeep Services.

Company’s overall Logistics segment company has 20 msqft of Space under Management and covers 19000+ Pin-codes through Full Truck Trips of 42000+ p.m. and 1750+ EV fleet and so far, it has delivered 11 crs. packages p.m. across 1100 locations in India, 50+ Global Trade lanes and 10,000+ Ocean Freight TEUs per annum.  

Under its Contract logistics segment company has 19.6 million sq. ft. of space under management with operations in 400+ locations and serves 1500+ Business Associations through 17,000+ Trucks deployed per month. It has 1.3 million sq. ft. BTS WH under development across key demand clusters which includes 3,00,000 sq. ft. in Guwahati and - 4,50,000 sq. ft. in Kolkata which will Go-Live in Q2 FY25 and 3,00,000 sq. ft. in Nashik and 3,20,000 sq. ft. in Phaltan which will go live in Q4FY25.

Under its last mile delivery segment company has handled 350,000+ orders volume per day through its deployed fleet of 6000+ vehicles per day and operating at 300+ last mile locations. It has a wide geographic reach of 4000+ pin codes pan India. Company’s Freight Forwarding service serves 50+ Forwarding lanes globally under the name of Lords Freight India Pvt. Limited. It has managed 2,440 TEUs of Ocean Freight Volumes in Q4Fy24 and 1,045 Tons of Air Freight volume in Q4 FY24.

Company’s B2B express vertical serves 19000+ Pincode including Direct and ODA under the brand name Rivigo by Mahindra Logistics by MLL Express Services Private Limited, a wholly owned subsidiary of the company. It has 1.5 Mn. Sq. Ft. of space under management, 200+ Transhipment Hubs and DCs, 260+ Processing centres and branches, 400+ partners for first mile and last mile connectivity served through 1100+ Trucks of Line Hauls & Midmile. Company’s Mobility brand MLL Mobility serves 100+ locations Pan India and goes for 15000+ trips per day with 5000+ Vehicles deployed per day through 300+ supply partners across India.

Fundamentals (FY23-24):

CMP	Rs. 440
52 - week high	Rs. 493
52 – week low	Rs. 348
Dividend % (consolidated)	0.57%
ROE	-11%
BVPS (Rs.)	77
Sales (Rs.) (Q2FY24)	9,533 cr.
Debt to Equity	0.69
P/E ratio	-53.8
EPS (consolidated)	-7.6
P/B ratio	5.98
Market Cap	3,172.02Cr.
Face value	Rs. 10

 

Financial Results:

Net Sales at Rs 1,450.76 crore in March 2024 up 14.01% from Rs. 1,272.51 crore in March 2023. It reported Quarterly Net Loss at Rs. 12.85 crore in March 2024 down 1467.07% from Rs. 0.82 crore in March 2023. Its EBITDA stands at Rs. 59.49 crore in March 2024 down 11.93% from Rs. 67.55 crore in March 2023.

Key Updates:

1. The company is set to broaden its footprint in West Bengal as a part of which it will commence operations of a 1.1 lakh sq. ft. fulfilment centre in Malda, West Bengal, dedicated to handling fulfilment and last-mile deliveries. This centre is a critical part of Mahindra Logistics’ supply chain network and will execute efficient and timely deliveries through end-to-end fulfilment and distribution capabilities. Additionally, Mahindra Logistics is also adding 14 last-mile delivery stations, touching approximately 15,000 households daily. As part of the expansion in the Eastern region, the centre is strategically positioned to serve Northern West Bengal, Eastern Bihar, and parts of the Northeast.
2. The company recently inaugurated a 1 lakh sq. ft. extension to its existing multi-client warehouse in Nashik and announced the development of a new 3 lakh sq. ft. warehousing facility, thereby expanding its overall warehousing footprint to 5 lakh sq. ft. in Nashik, Maharashtra. This will be the largest warehousing space offered by any service provider in Nashik.
3. It has also completed the ground breaking of its state-ofthe-art warehousing facility in Phaltan, near Pune with an expansive area of 6.5 lakh sq. ft., and this facility will be developed in two phases. The first phase, comprising 3.5 lakh sq. ft., is scheduled to be operational by the end of 2024.
4. Company recently launched services on ONDC Network where it will provide same-day & next-day intra-city pick-up and delivery services to all sellers on ONDC and they will have access to Mahindra Logistics’ entire range of services enabling intra-city and inter-city delivery in up to 19,000 pin codes.
5. It has recently unveiled its state-of-the-art warehouse in Bhiwandi, located near Mumbai. This facility spans an expansive 6.5 lakh square feet and it allows Mahindra Logistics Ltd. to provide flexible, scalable fulfilment and integrated distribution solutions.
6. Rivigo by Mahindra Logistics launched its first Express Hub in Bhiwandi followed with Luhari and Pune, these new processing centres are a part of Mahindra Logistics large format, multi-client warehouse that offer state-of-the-art infrastructure and facilities.
7. Mahindra Logistics has also commenced Cargo Charter operations in the Middle East, headquartered in Dubai.
8. Mahindra Logistics Ltd. (MLL) and Ascendas - Firstspace – an industrial real estate developer has jointly set up a new one million square feet of multi-client warehouse park in Talegaon, Pune. With comprehensive connectivity, the entire development will be spread over three phases with the first phase of 0.5 million sq. ft. to be operational by the end of 2023-24.
9. Mahindra Logistics Limited has announced its collaboration with Flipkart for integrated line haul solutions which will enhance operational efficiency and consistency as well as reinforce both companies’ shared commitment to innovation.
10. Company has also acquired majority stake in ZipZap Logistics Private Limited, a last-mile logistics service provider operating under its brand ‘Whizzard’.
11. Mahindra Logistics Limited (MLL) along with LOGOS – leading Asia Pacific logistics specialist and Venture partner Ivanhoe Cambridge, pave way for green logistics by transforming India’s largest warehousing facility towards net-zero. With this transformation in Luhari, MLL’s total renewable powered warehouses now stands over 4MN sq. ft. in the country.

In last 1 Year the stock gave a whooping return of 20.75% as compared to the rise of Sensex and Nifty in the same period.

The global logistics market is poised to grow at a CAGR of 10.7% from 2023 to 2030, Enterprise Mobility service segment and Airport mobility service segments are expected to grow by 13% CAGR, Last mile delivery segment is expected to grow by 25% CAGR, Freight Forwarding is expected to grow by 8-9% CAGR, B2B express surface segment is expected to grow by 13 – 15% CAGR and B2B express air segment is expected to grow by 8 – 9% CAGR within next 2 years and company is well poised to get benefited from these growing segments. The company has also set a target to be a Rs. 10,000 crore logistics service providers by FY 2026 with 18% Return on Equity. Considering growth of Logistics sector in India, backing of Mahindra group, years of experience, tech driven operations and expansion plans underway, investors can invest in this company for long term period.

HET ZAVERI​

info@smartinvestment.in

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