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This Article is From Dec 18, 2023

VRL Logistics - Branch Expansion, Formalisation Of The Sector To Drive Volume Growth: Motilal Oswal

VRL Logistics - Branch Expansion, Formalisation Of The Sector To Drive Volume Growth: Motilal Oswal
VRL Logistics Ltd. (Source: Company official fb page)

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

VRL Logistics Ltd.'s transition into a pure-play goods transport player, integration of additional branches, expansion of fleet capacity, growing customer base, and market share gains from less-organised competitors position the company favorably for a steady volume and sustainable earnings growth.

We expect VRL Logistics to report 14% volume compound annual growth rate over FY23-26, with faster addition of branches in untapped regions.

We anticipate the company to deliver a revenue/Ebitda/profit after tax compound annual growth rate of 16%/18%/23% over FY23-26.

We reiterate our 'Buy' rating with a target price of Rs 910 (based on 26 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.

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