Motilal Oswal, a prominent brokerage firm, has recently made strategic moves by selecting two stocks to focus on. The firm has set its sights on Anant Raj, following the company’s impressive revenue performance that exceeded market expectations. Meanwhile, it has maintained a ‘Neutral’ stance on Mahindra Logistics, indicating a cautious approach despite some positive indicators.

Anant Raj: A Strong Performer

Motilal Oswal has assigned a Buy rating to Anant Raj, projecting a target price of ₹494 per share. The company reported its Q4 FY25 earnings, which aligned with the brokerage’s forecasts. Notably, Anant Raj achieved a revenue of ₹540 crore, reflecting a robust 22% year-on-year growth, surpassing Motilal Oswal’s estimates.

• EBITDA Margin: The EBITDA margin stood at 26.3%, marking a 2.8% increase year-over-year, although it fell short of expectations.
• Annual Revenue: For FY25, the company’s revenue reached ₹2,060 crore, which is a significant 35% increase compared to the previous year.
• EBITDA Growth: EBITDA rose to ₹490 crore, a remarkable 47% year-on-year increase.
• Dividend Announcement: The board has proposed a final dividend of ₹0.73 per share on shares with a face value of ₹2.

Anant Raj also reported a healthy net cash position of ₹190 crore for FY25, contrasting sharply with the net debt of ₹3.7 crore in FY24.

Mahindra Logistics: Cautious Outlook

On the other hand, Motilal Oswal has kept its Neutral rating for Mahindra Logistics, setting a target price of ₹300, which suggests a 3% downside from the current market price of ₹310. The company experienced modest growth in Q4 FY25, with a strong performance in third-party and outbound logistics, but faced hurdles in express logistics.

• Future Expectations: Mahindra Logistics anticipates a reduction in losses in the express business as volumes are expected to increase in the upcoming quarters.
• Focus Areas: Despite the challenges in the B2B express and mobility sectors, the firm is prioritizing cost management, retail growth, and the introduction of new services.

The logistics company continues to benefit from favorable industry trends in the automotive sector, rural demand, and consumer durables, alongside signs of recovery in B2B and real estate-linked logistics. Motilal Oswal has adjusted its EBITDA estimates for FY26 and FY27, projecting a CAGR of 24% in revenue and 37% in EBITDA over FY25-27, reflecting a cautious but optimistic outlook.

In summary, while Anant Raj shows promising growth prospects, Mahindra Logistics is navigating a complex landscape with a focus on stability and gradual improvement. Investors should keep an eye on these developments as they could influence market dynamics moving forward.