is Mahindra Logistics is good buy now, Price to book all time low and price to sales all time low and company continuously trying to expand the business
can anyone let me know what are the negative factors about their business model now
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Last two quarters standalone EBITA margin jump to 8% from 5% .As per management this is because of the operational efficiency and can sustain going forward But the growth is not visible in the consolidated EBITA because of revigo acquisiton loss(-18cr).once the revigo EBITA break even happens (expected in q3fy24) Market may consider the growth and reward the stock
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Hi,
Another bad set of results at the consolidation level. Seems like situation is getting worse instead of improving.
Q2 FY24 MLL Standalone compared with Q2 FY23
• Revenue Rs. 1,136 crores as compared to Rs. 1,195 crores
• EBITDA Rs. 74 crores as compared to Rs. 64 crores
• PBT Rs. 26 crores as compared to Rs. 15 crores
• PAT Rs. 19 crores as compared to Rs 11 crores.
• EPS (Diluted) Rs.2.59 as compared to Rs 1.5
Q2 FY24 (consolidated) performance compared with Q2FY23
• Revenue Rs. 1,365 crores as compared to Rs. 1,326 crores
• EBITDA Rs. 54 crores as compared to Rs. 68 crores
• PBT Rs. (8 crores) as compared to Rs. 17 crores
• PAT loss Rs 16 crores compared to profit of Rs. 11 crores
• EPS (Diluted) Rs. (2.21) as compared to Rs. 1.69
It is quite evident that the acquisitions made by the management is backfiring. They have not been able to streamline the processes yet. EBIDTA margins have deteriorated significantly due to higher operating expenses.
If we see standalone results it is improving, and they could have been better off instead of acquiring these loss-making cheap businesses. Even there is no revenue growth also.
Senior border please suggest your views!
Disclaimer: Invested, no buy/Sell recommendation.
Thanks,
Deb
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Just checked that they are also participating in the ONDC program through their zipzap logistics service as a last mile delivery provider
does any one know about their Financial liabilities, that is increasing year by year and hitting hard on the cash flow (321 cr on FY24)