Is Mahindra Logis. overvalued or undervalued?

As of 23 July 2025, Mahindra Logistics has seen its valuation grade change from attractive to fair, indicating a potential shift in its market perception. The company is currently fairly valued, with a PE ratio of -95.28, an EV to EBITDA of 14.72, and a Price to Book Value of 8.12. These ratios suggest that the company is struggling with profitability, as reflected in its negative ROE of -8.19% and a low ROCE of 4.77%.
When compared to peers, Mahindra Logistics stands out with its fair valuation against Container Corporation, which is deemed very expensive with a PE of 35.32, and Transport Corporation, which is also fairly valued with a PE of 23.31. The company's recent stock performance has lagged behind the Sensex, particularly over the past year, where it returned -30.85% compared to the Sensex's 2.86%, reinforcing the notion that the stock may not be positioned for immediate recovery despite its current fair valuation.