Short Description
VRL Logistics’ valuation has become very attractive. A strong profitability profile and recent MOJO grade upgrade signal a compelling opportunity for value-focused investors. Read the full analysis.
Read Time
3 Minutes, 45 Seconds
**Main Article
VRL Logistics presents a compelling case for value-oriented investors, as its recent price dip has created a significantly more attractive valuation profile. As of February 2026, the stock trades at a P/E ratio of 21.28, a marked improvement from prior assessments and notably conservative compared to high-flying logistics peers like Delhivery (P/E 174.72) and Blue Dart Express (P/E 47.24). This “very attractive” valuation grade is no fluke. It is solidly underpinned by exceptional fundamental strength, including a robust Return on Equity (ROE) of 21.81% and a Return on Capital Employed (ROCE) of 18.58%.
Beyond strong valuation metrics, VRL Logistics delivers consistent operational outperformance. The company’s EV/EBITDA ratio of 9.30 is a fraction of other sector players, and its PEG ratio of 0.26 suggests earnings growth is not yet fully priced into the stock. Furthermore, investors gain an income component through a healthy 3.44% dividend yield. This combination of growth, value, and income is rare in the high-expectation transport services sector and supports a risk-reward profile that favors long-term capital appreciation.
The investment thesis is reinforced by a critical catalyst: MarketsMOJO’s recent upgrade of VRL Logistics’ Mojo Grade from ‘Hold’ to ‘Buy’. This move reflects enhanced confidence in the company’s fundamentals and sector positioning. While acknowledging sector risks like fuel price volatility, the current valuation reset—with the stock trading well below its 52-week high—offers a favorable entry point. With a history of outpacing the Sensex across multiple recent timeframes, VRL Logistics stands out as a fundamentally sound, mid-cap pick for investors seeking quality exposure to Indian logistics.
Short Summary
VRL Logistics’ stock now carries a “very attractive” valuation, supported by strong profitability (ROE ~22%) and conservative multiples versus peers. A recent MOJO upgrade to ‘Buy’ highlights its improved investment appeal. The combination of value, strong fundamentals, and growth potential presents a balanced opportunity in the transport services sector for discerning investors.
