Mahindra Logistics Shows Positive Performance in Q2 FY25, But Debt and Profitability Concerns Remain.

This could impact investor sentiment.

Debt to Equity Ratio – Quarterly: Highest at 0.31 times in the last five quarters.Company’s debt levels have increased, which could impact its financial stability in the long run.

Net Profit Margin – Quarterly: Lowest at 1.03 % in the last five quarters.Company’s profitability has decreased in the near term. This could be a cause for concern for investors.

Mahindra Logistics, a smallcap logistics company, has recently announced its financial results for the quarter ending September 2024. The company has shown positive performance in this quarter, with its score improving from -4 to 6 in the last three months.

One of the key factors contributing to this positive performance is the company’s ability to manage its interest payments, with the Operating Profit to Interest ratio being the highest in the last five quarters at 3.47 times. Additionally, the company has also generated higher cash revenues from its business operations, with the Operating Cash Flow being the highest at Rs 226.86 crore in the last three years.

The company’s net sales have also seen a positive trend, with the highest recorded at Rs 1,521.10 crore in the last five quarters. Similarly, the Operating Profit (PBDIT) has also shown a positive trend, with the highest recorded at Rs 66.38 crore in the last five quarters. The Profit Before Tax less Other Income (PBT) has also shown a positive trend, with the highest recorded at Rs -6.70 crore in the last five quarters.

However, there are some areas that need improvement for Mahindra Logistics. The Dividend Payout Ratio (DPR) has been the lowest at -32.90% in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends. This could potentially impact investor sentiment. Additionally, the Debt to Equity Ratio has been the highest at 0.31 times in the last five quarters, indicating an increase in the company’s debt levels. This could have an impact on its financial stability in the long run. Lastly, the Net Profit Margin has been the lowest at 1.03% in the last five quarters, indicating a decrease in the company’s profitability in the near term.

Overall, Mahindra Logistics has shown positive financial performance in the quarter ending September 2024. However, there are some areas that need improvement, and investors may want to keep an eye on these factors before making any investment decisions. MarketsMOJO has given a ‘Hold’ call for the company’s stock based on its financial performance.