The government recently reduced GST across products in an attempt to improve consumption across the economy. The improvement in consumption will support volumes for logistics companies like VRL Logistics.
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Motilal Oswal Report
VRL Logistics Ltd. is well-positioned for long-term growth, supported by its strategic focus on profitable contracts, operational efficiency, and strong service reliability.
The company’s investment in technology, disciplined cost management, and robust hub-to-hub network create a strong foundation to scale operations as demand recovers.
While near-term headwinds persist, VRL Logistics’ approach to capacity addition, GST reduction (to support volumes), and a stable pricing strategy positions it to benefit from structural growth in India’s organized surface logistics sector.
We expect VRL Logistics to clock flat volumes and a revenue/Ebitda/PAT CAGR of 6%/10%/19% over FY25-27.
Reiterate Buy with a target price of Rs 350 (based on 24x FY27 earnings per share).
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