HSBC has maintained a hold rating on VRL Logistics while reducing the target price to ₹600 per share, reflecting a moderate upside from its current market price (CMP) of ₹529.90.
The brokerage acknowledged that price increases and cost efficiencies have significantly improved margins, leading to strong profitability growth. However, HSBC remains cautious, stating that while the profitability improvement is impressive, the key factor to watch will be the sustainability of these margins alongside volume growth.
With the target price set at ₹600, VRL Logistics presents limited upside, as future growth will depend on its ability to sustain margin gains while expanding volumes.
(Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors are advised to conduct their own due diligence before making any investment decisions.)
