NSEI:MAHLOG

Stock Analysis Report

Executive Summary

Mahindra Logistics Limited provides third party logistic services in India and internationally.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Mahindra Logistics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MAHLOG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.2%

MAHLOG

-2.9%

IN Logistics

-3.9%

IN Market


1 Year Return

-58.1%

MAHLOG

-48.2%

IN Logistics

-32.2%

IN Market

Return vs Industry: MAHLOG underperformed the Indian Logistics industry which returned -46.2% over the past year.

Return vs Market: MAHLOG underperformed the Indian Market which returned -30.7% over the past year.


Shareholder returns

MAHLOGIndustryMarket
7 Day0.2%-2.9%-3.9%
30 Day-37.7%-35.9%-26.8%
90 Day-48.8%-34.0%-31.7%
1 Year-57.9%-58.1%-47.7%-48.2%-30.8%-32.2%
3 Yearn/a-53.5%-54.7%-19.5%-23.8%
5 Yearn/a-68.9%-70.0%-10.0%-14.9%

Price Volatility Vs. Market

How volatile is Mahindra Logistics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mahindra Logistics undervalued compared to its fair value and its price relative to the market?

22.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAHLOG (₹218.45) is trading above our estimate of fair value (₹171.74)

Significantly Below Fair Value: MAHLOG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MAHLOG is poor value based on its PE Ratio (22.6x) compared to the Logistics industry average (9.9x).

PE vs Market: MAHLOG is poor value based on its PE Ratio (22.6x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: MAHLOG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MAHLOG is overvalued based on its PB Ratio (3.1x) compared to the IN Logistics industry average (0.7x).


Next Steps

Future Growth

How is Mahindra Logistics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAHLOG's forecast earnings growth (27.9% per year) is above the savings rate (6.5%).

Earnings vs Market: MAHLOG's earnings (27.9% per year) are forecast to grow faster than the Indian market (19.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MAHLOG's revenue (12.9% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: MAHLOG's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAHLOG's Return on Equity is forecast to be low in 3 years time (16.7%).


Next Steps

Past Performance

How has Mahindra Logistics performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAHLOG has high quality earnings.

Growing Profit Margin: MAHLOG's current net profit margins (1.9%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: MAHLOG's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: MAHLOG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MAHLOG had negative earnings growth (-16.6%) over the past year, making it difficult to compare to the Logistics industry average (-1.9%).


Return on Equity

High ROE: MAHLOG's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is Mahindra Logistics's financial position?


Financial Position Analysis

Short Term Liabilities: MAHLOG's short term assets (₹9.7B) exceed its short term liabilities (₹7.1B).

Long Term Liabilities: MAHLOG's short term assets (₹9.7B) exceed its long term liabilities (₹1.3B).


Debt to Equity History and Analysis

Debt Level: MAHLOG's debt to equity ratio (27.1%) is considered satisfactory.

Reducing Debt: MAHLOG's debt to equity ratio has increased from 1.3% to 27.1% over the past 5 years.

Debt Coverage: MAHLOG's debt is well covered by operating cash flow (104.1%).

Interest Coverage: MAHLOG's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet

Inventory Level: MAHLOG has a low level of unsold assets or inventory.

Debt Coverage by Assets: MAHLOG's debt is covered by short term assets (assets are 7x debt).


Next Steps

Dividend

What is Mahindra Logistics's current dividend yield, its reliability and sustainability?

0.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAHLOG's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: MAHLOG's dividend (0.82%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MAHLOG has been paying a dividend for less than 10 years.

Growing Dividend: MAHLOG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.7%), MAHLOG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAHLOG's dividends in 3 years are forecast to be well covered by earnings (26.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Rampraveen Swaminathan (44yo)

0.50

Tenure

Mr. Rampraveen Swaminathan has been Chief Executive Officer and Managing Director of Mahindra Logistics Limited since October 1, 2019 and February 4, 2020 respectively. Mr. Swaminathan serves as Additional ...


Leadership Team

NamePositionTenureCompensationOwnership
Yogesh Patel
CFO & Compliance Officer1.58yrsno data0.0049% 765.2k
Brijbala Batwal
Company Secretary3.75yrsno datano data
Rampraveen Swaminathan
MD, CEO & Additional Director0.50yrno datano data
Sushil Rathi
CEO of Lords Freight Limited & COO of Transportation & Procurement4.67yrs₹10.78m0.21% 32.3m
Huafreed Nasarwanji
Head of Sales & Marketingno datano datano data
Mehernosh Mehta
VP & Head of Human Resourceno data₹5.59m0.067% 10.5m
Ravi Begur
Senior General Manager4.42yrs₹2.51m0.043% 6.7m
Prasanna Pahade
Head of M&M Businessno datano datano data
Vibhu Manya
Head of Enterprise Mobilityno datano data0.015% 2.3m
Ankur Singhai
Head of E-commerceno datano datano data

3.8yrs

Average Tenure

44.5yo

Average Age

Experienced Management: MAHLOG's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rampraveen Swaminathan
MD, CEO & Additional Director0.50yrno datano data
Ranu Vohra
Non-Executive Independent Director2.75yrs₹1.10mno data
Darius Pandole
Non-Executive Independent Director2.75yrs₹1.30mno data
S. Durgashankar
Non-Executive Non-Independent Director0.92yrno datano data
Vankipuram Parthasarathy
Chairman of the Board0.083yrno datano data
Avani Davda
Non-Executive Independent Director1.83yrs₹900.00kno data
Parag Shah
Non-Executive Director11yrsno datano data
Ajay Mehta
Non-Executive Independent Director5.08yrs₹1.30mno data

2.3yrs

Average Tenure

50yo

Average Age

Experienced Board: MAHLOG's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MAHLOG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mahindra Logistics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mahindra Logistics Limited
  • Ticker: MAHLOG
  • Exchange: NSEI
  • Founded: 2000
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: ₹15.616b
  • Shares outstanding: 71.48m
  • Website: https://www.mahindralogistics.com

Number of Employees


Location

  • Mahindra Logistics Limited
  • Techniplex 1, Techniplex Complex
  • 1A & 1B, 4th Floor
  • Mumbai
  • Maharashtra
  • 400062
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAHLOGNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2017
540768BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2017

Biography

Mahindra Logistics Limited provides third party logistic services in India and internationally. It operates through two segments, Supply Chain Management (SCM) and People Transport Solutions (PTS). The SCM segment offers customized and end-to-end logistics solutions and services, including transportation and distribution, warehousing, in-factory logistics, and value added services. The segment serves domestic and multinational companies operating in various industry verticals, including automotive, engineering, consumer goods, pharmaceuticals, e-commerce, and bulk. The PTS segment provides technology-enabled people transportation solutions and services for domestic and multinational companies operating in the information technology, information technology-enabled service, business process outsourcing, financial services, consulting, and manufacturing industries. The company also provides freight forwarding services for exports and imports, customs brokerage operations, project cargo services, and charters. Mahindra Logistics Limited was founded in 2000 and is headquartered in Mumbai, India. Mahindra Logistics Limited is a subsidiary of Mahindra & Mahindra Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 14:08
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.