Is VRL Logistics overvalued or undervalued?

As of 18 August 2025, the valuation grade for VRL Logistics has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently undervalued, supported by key ratios such as a PE ratio of 11.13, an EV to EBITDA of 5.67, and a PEG ratio of just 0.02, which suggests significant growth potential relative to its price.
When compared to peers, VRL Logistics stands out favorably; for instance, Container Corporation has a much higher PE ratio of 31.05, while Delhivery exhibits a staggering PE of 174.76, highlighting VRL's relative affordability. Additionally, VRL's dividend yield of 3.58% and ROE of 20.24% further reinforce its attractiveness as an investment. Despite recent underperformance relative to the Sensex over the past month, the long-term outlook remains promising, particularly given its substantial 5-year return of 271.30%.