Mahindra Logistics Limited (NSE:MAHLOG) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

Investors in Mahindra Logistics Limited (NSE:MAHLOG) had a good week, as its shares rose 3.8% to close at ₹467 following the release of its full-year results. Revenues came in at ₹55b, in line with expectations, while statutory losses per share were substantially higher than expected, at ₹7.60 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Mahindra Logistics

After the latest results, the ten analysts covering Mahindra Logistics are now predicting revenues of ₹62.3b in 2025. If met, this would reflect a meaningful 13% improvement in revenue compared to the last 12 months. Mahindra Logistics is also expected to turn profitable, with statutory earnings of ₹8.87 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹63.6b and earnings per share (EPS) of ₹9.37 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of ₹445, suggesting the downgrades are not expected to have a long-term impact on Mahindra Logistics' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Mahindra Logistics analyst has a price target of ₹604 per share, while the most pessimistic values it at ₹300. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Mahindra Logistics' growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Mahindra Logistics is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Mahindra Logistics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Mahindra Logistics analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Mahindra Logistics (1 shouldn't be ignored!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.