25% Dividend Record Date: Logistic Stock Nears 1-Year High And It Belongs To Mahindra; Motilal Neutral

Mahindra Logistics, part of Mahindra Group, rallied on Tuesday to end at Rs 450.95 apiece, up by 1.5% on BSE. That being said, the stock is nearing its 52-week high of Rs 492.60 apiece. The upbeat performance comes after the company announced its healthy Q4 earnings and recommended a dividend payout of 25%. Motilal Oswal is NEUTRAL on the stock.

The company's stock is small with market value at Rs 3,248.47 apiece as of April 23.

Mahindra Logistics Dividend:

The company has recommended a final dividend of Rs . 2.50 per equity share of the face value of Rs. 10/- each (25%) for the financial year ended 31 March 2024. The dividend payout is subject to the Members' approval at the ensuing 17th Annual General Meeting ("AGM") of the Company.

Further, Mahindra fixed July 12 as the record date to determine eligible shareholders for the dividend payout. It plans to pay the dividend from Saturday, 13 July 2024 to Monday, 22 July 2024 (both days inclusive).

Mahindra Logistic Earnings:

Q4 FY24 (consolidated) performance compared with Q4 FY23:

- Revenue Rs. 1,451 crores as compared to Rs. 1,273 crores.

- EBITDA Rs.57 crores as compared to Rs.64 crores.

- PBT Rs. (9.2) crores as compared to Rs. (4.6) crores.

- PAT loss Rs. 12.9 crores compared to Rs. 0.8 crores.

- EPS (Diluted) Rs. (1.78) as compared to Rs. (0.11)

FY24 (consolidated) performance compared with FY23.

- Revenue Rs.5,506 crores as compared to Rs. 5128 crores.

- EBITDA Rs. 229 crores as compared to Rs. 260 crores.

- PBT Rs. (26.4) crores as compared to Rs. 34.5 crores.

- PAT loss Rs. 54.7 crores compared to a profit of Rs. 26.3 crores.

- EPS (Diluted) Rs. (7.60) as compared to Rs. 3.64

Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics said, "The quarter gone by was marked by an increasing volume recovery and growth as we saw positive momentum across our businesses, with strong growth in 3PL and Mobility segments. Our B2B express business has started seeing the benefits of cost optimization, as we continue to improve operating margins & EBITDA. The mobility segment remains on a recovery path. Overall In FY 2023-24, excluding one-time charges, earnings across our core 3PL and other businesses were stable and improving."

Further, he added, "Completion of the 2nd tranche of investment in Zip-Zap Logistics will help us further consolidate and provide an expanded range of services from last mile delivery and micro-fulfilment. We remain focused on driving the value of logistics solutions by integrating services across India, leveraging our technology, process and human capital."

Motilal Oswal On Mahindra Logistics:

As per Motilal Oswal, Mahindra Logistics' Q4 performance is in line with its estimates, however, high tax outgo dragged down APAT.

Motilal said, "Revenue grew by ~14% YoY to INR14.5b (in line).EBITDA margin came in at 3.9% (inline), down 100bp YoY and up 20bp QoQ. EBITDA decreased 11% YoY to INR566m, in line with our estimate." While it added, "Adjusted net loss stood at INR128m vs. INR8m in 4QFY23 (our estimate of INR6m loss)."

Motilal said it is Neutral on the stock. The target price will be set by the brokerage in the coming days.

Mahindra Logistics Limited (MLL) is an integrated third-party logistics (3PL) service provider, specializing in supply chain management and enterprise mobility. MLL serves over 400+ corporate customers across various industries like Automobile, Engineering, Consumer Goods and E-commerce. The Company pursues an "asset-light" business model, providing customised and technology enabled solutions that span across the supply chain and people mobility services.

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