Mahindra Logis. (MAHLOG)
TurnaroundFairStock Score: 24/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹405.5 |
| Market Cap | ₹4,023.47 Cr |
| P/E Ratio | 95.19 |
| ROCE | 5.64% |
| ROE | 5.16% |
| Dividend Yield | 0.62% |
| Profit Growth | 350.31% |
| Debt/Equity | 0.47 |
| Sales Growth | 23.4% |
| Free Cash Flow | ₹1,61,13,374.72 Cr |
| Promoter Holding | 59.6% |
| 52-Week Range | ₹275.05 — ₹450 |
| Sector | Transport Services |
| Book Value | ₹79.47 |
Strengths
- Sales growth of 19.06% shows business expansion momentum.
- Piotroski F-Score of 7/9 indicates generally improving financial health.
- Debt/Equity of 0.47 is moderate for the balance sheet.
- Promoter holding of 59.60% provides ownership alignment.
- Profit growth of 146.23% reflects recovery from a low profit base.
Concerns
- Latest quarter net profit of ₹6 Cr on ₹1,898 Cr sales is razor-thin, around 0.3% margin.
- P/B of 6.59 is expensive relative to ROE of 5.16% and ROCE of 5.64%.
- Reported FCF of ₹161.13 lakh Cr appears implausible for a ₹4,105 Cr market-cap company and needs clarification.
- Dividend yield of 0.60% offers little income support while waiting for a turnaround.
AI Analysis
At ₹443, Mahindra Logis asks me to pay ₹4,105 Cr for a business whose book value is only ₹67.28 per share. That translates to 6.59 times book. For that premium, I expect strong returns on capital. What do I get? ROE of 5.16% and ROCE of 5.64%. These numbers are closer to a bond yield than to a compounding machine. The latest quarter confirms the problem: revenue of ₹1,898 Cr produced just ₹6 Cr of net profit. A 0.3% margin leaves no cushion for fuel costs, competition, or execution mistakes. The 146% profit growth looks appealing, but it is growing from a base of almost nothing. Sales growth of 19% is genuinely encouraging; a logistics company with volume growth has something to work with. Debt at 0.47 times equity is acceptable. Promoter holding of 59.6% aligns owners with minority shareholders. The Piotroski score of 7/9 suggests the company is not deteriorating financially. Still, Benjamin Graham taught me that price is what you pay, value is what you get. At near the 52-week high of ₹450, the market is pricing in a successful turnaround. I see a possible turnaround, not a proven one. The dividend yield of 0.60% does not compensate me while I wait. The reported free cash flow figure of ₹161.13 lakh Cr seems inconsistent with a company of this size, and I would demand clarity before trusting it. I would rather miss this move than overpay for hope. Let margins improve, ROCE climb well above the cost of capital, and the valuation become reasonable. Then I will study it with serious interest.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer