Shares of Mahindra Logistics surged 7.5% on September 14

Mahindra Logistics Ltd is a provider of integrated logistics and mobility solutions.

On September 14, Indian markets are trading in the red. Yesterday, US markets closed deep in red, where both Dow Jones and S&P 500 closed more than 4% down. Today, at 12:25 pm, the S&P BSE Sensex is trading at 60340, 0.38% down on the day, while NIFTY50 is down 0.3% and trading at 18016.

Regarding sectoral performance, IT is the worst performer, while Telecom and Auto are relatively outperforming. Talking about stock-specific action, Mahindra Logistics Ltd is among the top gainer on September 14.

The shares of Mahindra Logistics Ltd have surged 7.5% and are trading at Rs 528.6 as of 12:25 pm. The stock opened at Rs 490.6 and so far, has made an intraday high and low of Rs 543.7 and Rs 485.95, respectively. The stock price surged as the company opened a new warehouse in Nashik.

Mahindra Logistics Ltd is a provider of integrated logistics and mobility solutions. The firm provides Supply Chain expertise to a wide range of industries, including automotive, engineering, consumer goods, pharmaceuticals, telecommunications, commodities, and e-commerce. It has 6000 plus drivers and 5500 plus vehicles deployed per day, operating in 12 plus cities in India.

The company had excellent June quarter results. For Q1FY23, the company’s revenue stood at Rs 1200 crore, a 36% YoY growth. Q1 FY23 net profit was recorded at Rs 13.64 crore, more than 4 times the net profit of Rs 3 crore reported in Q1FY22. The net profit margin also improved YoY from 0.34% in Q1FY22 to 1.14% in Q1FY23. As per the FY22 period ending, the company has ROE, ROCE, and a dividend yield of 5.98%, 8.26%, and 0.41%, respectively.

About the shareholding pattern, 58.12% of the stake is owned by the promoters, 20.08% by FIIs, 13.49% by DIIs, and the remaining 8.31% by non-institutional investors.

The company has a market capitalization of Rs 3797 crore and is currently trading at a PE multiple of 112x. The scrip has a 52-week high and low of Rs 814 and Rs 391, respectively.