Is Mahindra Logis. overvalued or undervalued?

As of 29 August 2025, Mahindra Logistics has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, particularly in light of its significant negative PE ratio of -84.06 and a price-to-book value of 7.17. Additionally, its EV to EBITDA stands at 13.30, which is relatively low compared to peers like Container Corporation with a PE of 30.41 and Delhivery at 176.28.
In comparison to its peers, Mahindra Logistics shows a more favorable valuation despite its negative ROE of -8.19% and a low ROCE of 4.77%. The company’s valuation metrics suggest it is trading at a discount relative to the market, especially when considering the performance of its peers, many of which are classified as expensive or very expensive. Notably, Mahindra Logistics has underperformed against the Sensex over various time frames, with a year-to-date return of -16.57% compared to the Sensex's 2.14%, reinforcing the notion of its undervaluation.