Check Before You Invest : Mahindra Logistics Ltd

Snapshot

Q.1 Which industry/sub-sector does Mahindra Logistics Ltd belong to?

Mahindra Logistics Ltd belongs to the Transportation & Logistics sector, operating specifically within the Logistics segment.

Q.2 Is Mahindra Logistics Ltd a good quality company?

Mahindra Logistics Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Mahindra Logistics Ltd undervalued or overvalued?

Mahindra Logistics Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Mahindra Logistics Ltd a good buy now?

Mahindra Logistics Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Mahindra Logistics Ltd?

Mahindra Logistics Ltd revenue growth is 10.7% for FY-2025, which is above its 5-year CAGR of 8.98%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Mahindra Logistics Ltd?

Mahindra Logistics Ltd Return on capital employed is 14% for FY-2025, which is in line with its 5-year historical median of 14%. The current ROCE is in line with its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Q.3 Return on Asset of Mahindra Logistics Ltd?

Mahindra Logistics Ltd Return on Asset is 1.98%, which is in line with its 5-year historical median of 1.98%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Mahindra Logistics Ltd?

Mahindra Logistics Ltd Return on equity is 6.37% for FY-2025, which is in line with its 5-year historical median of 6.37%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Mahindra Logistics Ltd?

Mahindra Logistics Ltd Cash conversion cycle is -38 days, above its 5-year historical median of -40 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	2.34	2.2
ROE	6.37	6.37
ROCE	14	14
Cash Conversion Cycle	-38 days	-40 days

Q.6 Gross Profit margin of Mahindra Logistics Ltd?

Mahindra Logistics Ltd Gross profit margin which is the profit after deduction of direct costs, is 5% for FY-2025, which is in line with its 5-year median of 5%, indicating stable margins.

Q.7 Operating Profit Margin of Mahindra Logistics Ltd?

Mahindra Logistics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.9% for FY-2025, which is in line with its 5-year median of 5.9% indicating stable margins.

Q.8 Net Profit Margin of Mahindra Logistics Ltd?

Mahindra Logistics Ltd Net Profit Margin is 0.87% for FY-2025, is in line with with its 5-year median of 0.87%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	5	5
Operating Profit Margin	5.9	5.9
Net Profit Margin	0.87	0.87

Q.9 Debt to Equity ratio of Mahindra Logistics Ltd?

Mahindra Logistics Ltd Debt-to-Equity ratio is 0.21, which is lower with the industry average of 0.49, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Mahindra Logistics Ltd?

Mahindra Logistics Ltd Debt to cash flow from operations is 0.39, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Mahindra Logistics Ltd?

Promoters hold 59.58% of the Mahindra Logistics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Mahindra Logistics Ltd vs industry peers?

Mahindra Logistics Ltd revenue CAGR is 8.98%, compared to the industry median CAGR of 8.98%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	10.7	9
Gross Profit Growth	-3.1	12.9
Operating Profit Growth	2.4	10
Net Profit Growth	-29	10.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.34	1.75
ROE	6.37	9.66
ROCE	14	12.69
Cash Conversion Cycle (days)	-37.56	46

Valuation & price assessment

Q.1 Stock return of Mahindra Logistics Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -4.36% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-4.4%	5.1%	45.6%

Q.3 Valuation ratios of Mahindra Logistics Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	90.9	76.02	19.94
Price to Book	2.65	4.62	2.00
Price to Sales	0.69	0.71	0.89
EV to EBITDA	10.31	10.76	10.78

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