(Reuters) – India’s Mahindra Logistics reported a seventh straight quarterly loss on Monday, hurt by higher freight and warehousing costs.
Its consolidated net loss widened to 107.5 million rupees ($1.3 million) in the second quarter ended Sept. 30 from a loss of 93.2 million a year ago.
Revenue from operations rose 11.5% to 15.21 billion rupees.
Total expenses climbed 10.7% to 15.28 billion rupees, led by a 12.2% rise in operating expenses.
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KEY CONTEXT
Mahindra Logistics, the logistics arm of the tech-to-tractor firm Mahindra Group, has been plagued by higher expenses, stiff competition in India’s $342 billion logistics market and losses related to the acquisition of express cargo firm Rivigo.
Analysts at Elara Capital had expected the company to start tightening its expenses to reach its goal of breaking even in business-to-business segment by mid-fiscal 2025.
PEER COMPARISON
Valuation (next Estimates (next 12 Analysts’ sentiment
12 months) months)
RIC PE EV/EBIT Revenue Profit Mean No of Stock to Div
DA growth growth rating* analysts price yield
target** (%)
Mahindra 44.37 10.92 14.75 NULL Sell 11 1.08 0.51
Logistics
Delhivery 96.98 39.87 16.94 NULL Buy 20 0.78 NULL
Blue Dart 44.90 18.38 11.83 34.27 Hold 4 1.06 0.30
Express
VRL 30.86 11.64 13.53 51.35 Buy 9 0.89 0.87
Logistics
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 84.0490 Indian rupees
(Reporting by Hritam Mukherjee and Ashish Chandra in Bengaluru; Editing by Janane Venkatraman)