Mahindra Group Small Cap Stock Trading Near 52 Week Low, Buy For Gains Up To 33%, Says Sharekhan

Sharekhan has come up with a Buy on Mahindra Logistics Ltd. (MLL) for a target price of Rs 502 apiece for potential gains up to 33% from its current level. Mahindra Logistics is a Mahindra Group small-cap company operating in the logistics sector. Mahindra Logistics is a leading integrated logistics & mobility solutions provider. The company offers Supply Chain solutions to diverse industry verticals such as Automotive, Engineering, Telecom, Consumer Goods, Pharmaceuticals, Commodities, and E-commerce.

Stock's Current Market Price, Returns And 52 Week Low/High

The current market price of Mahindra Logistics's stock is Rs 380.10 apiece, down 0.25% from its previous close. The stock touched its 52 week high on 23 September 2023 at Rs 567 apiece and 52 week low on 29 March 2023 at Rs 349.70 apiece, respectively.
The stock has given positive returns of 0.93% in 1 week and 3.04% in 1 month, respectively. It has given negative returns of 23.31% in 1 year. It has given 27.42% positive return in 3 years. In the past 5 years, it has given 21.71% negative return.

Valuation - Upgrade to Buy with an unchanged PT of Rs. 502

According to Sharekhan, MLL remains focused on the turnaround of B2B express business of Rivigo consolidating its express business under MSEPL. Further, it targets to increase the share of solutions business in 3PL vertical, which would provide better margins. It remains upbeat on end-user demand on medium-term barring e-commerce with focus on expanding margins. It remains committed on adding 2-3msf warehousing capacities per annum. "The stock has seen a correction of 17% since we downgraded the stock to Hold in our report dated February 2, 2023. We believe the current valuation at a P/E of 58x/34x its FY2024E/FY2025E earnings aptly factors its transitioning-related uncertainties providing an opportunity to Buy. Hence, we upgrade the stock to Buy with an unchanged PT of Rs. 502," the brokerage as said.

According to Sharekhan, the key risks to the buy call would be, Weakness in the automobile industry's outlook is a critical downside risk to our call.

Disclaimer - The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.