Mahindra Logistics: Acquisition of Rivigo’s B2B express business a mixed bag for shareholders

While the acquisition will help MLL to diversify into newer areas and grow its business, negatives include margin dilution

Sachin Pal
September 29, 2022 / 09:47 AM IST
PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

Highlights To acquire Rivigo's B2B Express for a lump sum consideration of Rs 225 crore Deal valued  at EV/sales multiple of just 0.6x Acquisition to add 9-10 percent to its top line Improving availability of semiconductors to aid the core business Revenues in Q1 rose 35 percent YoY Mahindra Logistics (MLL) is back under the arc light amid news that the third-party logistics (3PL) player is acquiring Rivigo’s B2B (business-to-business) express business. As per the terms, MLL will acquire Rivigo's B2B Express for a lump...