Why is Mahindra Logis. falling/rising?

Jul 01 2025 10:14 PM IST
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As of 01-Jul, Mahindra Logistics Ltd's stock price is Rs 347.00, up 3.15% recently, but it has a negative year-to-date return of -8.50% and a significant decline of -35.45% over the past year. Despite short-term gains, the company's long-term fundamentals are weak, raising concerns about its financial stability and investor confidence.
As of 01-Jul, Mahindra Logistics Ltd's stock price is currently at Rs 347.00, reflecting an increase of Rs 10.6 or 3.15%. The stock has shown positive momentum, gaining 3.58% over the last two days and outperforming its sector by 3.63% today. It has also performed well in the short term, with a 5.09% increase over the past week and a 7.81% increase over the past month. However, despite these recent gains, the stock has a negative year-to-date return of -8.50% and a significant decline of -35.45% over the past year. The company's attractive valuation, indicated by a return on capital employed (ROCE) of 4.8 and a lower enterprise value to capital employed ratio of 2.7, suggests it is trading at a discount compared to its peers. Nonetheless, the stock's long-term fundamentals are weak, with a -7.41% compound annual growth rate in operating profits over the last five years and a high debt-equity ratio of 1.98, which raises concerns about its financial stability.

In the broader market context, while the stock has shown positive short-term performance, it has underperformed the benchmark indices significantly over the past year. The Sensex has generated a return of 7.11% year-to-date, contrasting sharply with Mahindra Logistics' -8.50%. This underperformance is compounded by a decrease in institutional investor participation, which fell by -1.86% in the previous quarter, indicating a lack of confidence among larger investors. The overall market has been more favorable, with the BSE500 index returning 3.20% over the last year, further highlighting the challenges faced by Mahindra Logistics in attracting investment and improving its financial performance.
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