Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on July 30, 2025
- The company is an integrated logistics and mobility solutions provider offering technology enabled diversified portfolio of services.
• It has posted net losses for the last two fiscals.
• “Mahindra” Group’s tag is the plus point for this company which is heading for bright prospects ahead.
• Based on its recent financial performances, the issue appears fully priced.
• Well-informed/cash surplus investors may park moderate funds for medium to long term.
ABOUT COMPANY:
Mahindra Logistics Ltd. (MLL) is an integrated logistics and mobility solutions provider, offering a technology-enabled diversified portfolio of services spanning across contract logistics, express and parcel solutions, last-mile delivery, cross-border transportation and enterprise mobility. With an asset-light business model backed by a network of business associates, its business model is scalable ensuring a wider reach across the country with local expertise. As on March 31, 2025, it served over 19,000 pin codes and operate through 1,245 locations.
MLL is a part of the Mahindra group, which has a global presence across diverse business verticals, including automotive, farm equipment, technology, financial services, real estate, hospitality, logistics, renewable energy, and aerospace and defence. The Mahindra group’s flagship entity, Mahindra & Mahindra Limited, is its Promoter and had a market capitalization of Rs. 3,315.68 billion as of March 31, 2025 (based on the closing price of the Equity shares as of March 28, 2025, on BSE). As of March 31, 2025, it had 4989 employees on its payroll, and additional contractual employees in various department.
ISSUE DETAILS:
The company is issuing 27049301 Rights equity shares of Rs. 10 each at a fixed price of Rs.277 per share to mobilize Rs. 749.27 cr. The RI opens for subscription on July 31, 2025, and will close on August 14, 2025. The company is offering RI in the ratio of 3 for 8 to its eligible stakeholders as of the record date of July 23, 2025. Post allotment, shares will be listed on BSE and NSE. The company is asking full money on application for number of shares applied. The company is spending Rs. 6.20 cr. for this RI process, and from the net, it will utilize Rs. 556.30 cr. for repayment/pre-payment of certain borrowings, and Rs. 186.77 cr. for general corporate purposes.
This RI is self-managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue. ICICI Securities Ltd. is the advisor to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 72.13 cr. will stand enhanced to Rs. 99.18 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 2747.31 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total revenue/net profit/- (loss) of Rs. 5505.97 cr. / Rs. – (53.09) cr. (FY24), and Rs. 6104.83 cr. / Rs. – (30.00) cr. (FY25). Its NAV declined to Rs. 63.90 per share as of March 31, 2025, against Rs. 70.80 per share as of March 31, 2024.
DIVIDEND POLICY:
The company has dividends at 25% for the last three fiscals. It has adopted a dividend policy based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 540768 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 407.20 on July 22, 2025, and opened on an ex-right basis at Rs. 360.65 on July 23, 2025. Since then, it has marked a high/low of Rs. 370.10 / Rs. 335.80. The scrip last closed at Rs. 346.35 as of July 29, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 497.68 / Rs. 217.75.
The promoters’ holding has been 57.97% for the last two quarters ended with June 30, 2025 and was 58.03% for quarter ended December 31, 2024. The counter is well managed above the RI price to lure investors.
Conclusion / Investment Strategy
MLL is an integrated logistics and mobility solutions provider offering technology enabled diversified portfolio of services. It has posted net losses for the last two fiscals. “Mahindra” Group’s tag is the plus point for this company which is heading for bright prospects ahead. Based on its recent financial performances, the issue appears fully priced. Well-informed/cash surplus investors may park moderate funds for medium to long term.
Review By Dilip Davda on July 30, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
