Is GB Logistics overvalued or undervalued?

As of 3 June 2025, the valuation grade for GB Logistics has moved from does not qualify to attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued, particularly when considering its strong financial ratios, such as a PE Ratio of 4.43, an EV to EBITDA of 3.79, and an impressive ROE of 49.56%. These metrics suggest that the stock is trading at a discount compared to its earnings and cash flow generation capabilities.
When compared to peers, GB Logistics stands out with its attractive valuation, especially against Container Corp. of India Ltd., which has a PE Ratio of 37.54 and is deemed very expensive, and Aegis Logistics Ltd., which has a PE of 48.56. The stark contrast in valuation ratios highlights GB Logistics' potential for growth and value appreciation. Additionally, the company has outperformed the Sensex in the past week with a stock return of 10.33% compared to the Sensex's 1.36%, reinforcing the narrative that it is currently undervalued in the market.