VRL Logistics Q1 Review- Labor Shortage Due To Elections Hits Tonnage; Volume Likely To Improve: Motilal Oswal

Motilal Oswal Report

While VRL Logistics Ltd. faced growth challenges in the recent past (due to elections and driver shortages), volume growth could improve going forward. Volumes picked up in July 2024, and with good monsoons, the pickup in agricultural and textile commodities should boost improvement in volumes.

Further, with price hikes undertaken across commodities and customers, margins should also improve going forward.

We expect VRL Logistics to report an 11% volume compound annual growth rate over FY24-26, with faster addition of branches in the untapped regions. We anticipate VRL Logistics to deliver a revenue/Ebitda/profit after tax compound annual growth rate of 14%/18%/52% over FY24-26.

We reiterate our Buy rating with a revised target price of Rs 660 (based on 28 times FY26E earnings per share).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.