Is Mahindra Logis. overvalued or undervalued?

As of 11 August 2025, Mahindra Logistics has moved from an attractive to a fair valuation grade. The company appears to be overvalued at its current price of 332.75, especially considering its PE ratio of -88.08 and ROE of -8.19%. Additionally, the EV to EBITDA ratio stands at 13.81, which is relatively high compared to peers like Transport Corporation, which has a PE of 20.74 and an EV to EBITDA of 18.53, indicating a more favorable valuation.
In comparison to its peers, Mahindra Logistics shows significant discrepancies, particularly with its negative PE ratio and a PEG ratio of 0.00, suggesting no growth expectations. While Container Corporation is classified as very expensive with a PE of 31.45, Mahindra's financial metrics do not support a premium valuation. The company's recent stock performance has also lagged behind the Sensex, with a 1-year return of -32.13% compared to the Sensex's 1.13%, further reinforcing the view that Mahindra Logistics is currently overvalued.