VRL Logistics - Volume Growth To Drive Earnings: Motilal Oswal
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Motilal Oswal Report
We released our Logistics thematic report recently (Report link), wherein we highlighted that: a) The Logistics sector is set to move towards formalisation and b) There would be strong growth opportunities for some of the established players in this space.
With a robust growth outlook, we expect strong upside in the stock from current levels.
The strong tailwinds for VRL would drive consistent growth in volumes and earnings over the next few years.
The company would benefit from a) the uptick in economic activity, b) the general price hikes taken post Q1 FY22, and c) easing fuel prices (on account of tax cuts).
VRL Logistics Ltd. is focusing on the high-margin LTL business (driven by the B2B segment) and expanding its network into newer markets.
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