The quarterly results for Mahindra Logistics Limited (NSE:MAHLOG) were released last week, making it a good time to revisit its performance. It was a workmanlike result, with revenues of ₹21b coming in 6.3% ahead of expectations, and statutory earnings per share of ₹0.25, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Mahindra Logistics' five analysts are now forecasting revenues of ₹84.1b in 2027. This would be a solid 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 56% to ₹11.80. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹81.6b and earnings per share (EPS) of ₹11.46 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
See our latest analysis for Mahindra Logistics
With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.5% to ₹503per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Mahindra Logistics, with the most bullish analyst valuing it at ₹584 and the most bearish at ₹400 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mahindra Logistics' past performance and to peers in the same industry. It's clear from the latest estimates that Mahindra Logistics' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 12% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Mahindra Logistics is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mahindra Logistics following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Mahindra Logistics analysts - going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Mahindra Logistics that we have uncovered.
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