Is VRL Logistics overvalued or undervalued?

As of 1 July 2025, the valuation grade for VRL Logistics has moved from attractive to very attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued, supported by a PE ratio of 28.03, an EV to EBITDA ratio of 10.99, and a PEG ratio of 0.26, which suggests strong growth potential relative to its price.
In comparison to its peers, VRL Logistics stands out favorably against Container Corporation, which has a PE ratio of 34.59 and an EV to EBITDA of 22.05, and Delhivery, which is considered risky with a PE ratio of 171.22. Furthermore, VRL's return on equity (ROE) is 16.87%, indicating efficient use of equity capital. Notably, VRL Logistics has outperformed the Sensex in terms of year-to-date returns, achieving 16.42% compared to the Sensex's 7.11%, reinforcing its undervaluation narrative.