VRL Logistics (VRLLOG)
Slow GrowerFairStock Score: 36/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 1/1
Key Financials
| Current Price | ₹296.3 |
| Market Cap | ₹5,183.38 Cr |
| P/E Ratio | 19.38 |
| ROCE | 15.73% |
| ROE | 24.03% |
| Dividend Yield | 3.37% |
| Profit Growth | -58.98% |
| Debt/Equity | 1.01 |
| Sales Growth | 17.05% |
| Promoter Holding | 60.24% |
| 52-Week Range | ₹225 — ₹310.2 |
| Sector | Transport Services |
| Book Value | ₹62.63 |
Strengths
- High ROE of 24.03% shows efficient capital generation.
- Promoter holding at 60.24% aligns interests with minority shareholders.
- Piotroski F-Score of 7/9 suggests acceptable balance-sheet health.
- Dividend yield of 2.70% provides some shareholder return.
- Latest quarter is profitable with ₹65 Cr net profit on ₹827 Cr sales.
Concerns
- Sales growth is just 0.21%, indicating a stagnant top line.
- Valuation is rich: P/E of 20.32, P/B of 4.49, and PEG of 3.00.
- Debt/Equity of 1.01 adds balance-sheet risk; ROCE of 15.73% is modest for the leverage.
- FairStock Score of 27/100 flags the stock as risky.
AI Analysis
Let me begin with what I know. VRL Logistics operates in the logistics solution space, a business that requires scale, discipline and predictable returns. On the surface, the company looks profitable: ROE is 24.03%, and the latest quarter delivered ₹65 Cr net profit on ₹827 Cr sales. Promoter holding at 60.24% is positive. The Piotroski score of 7/9 also tells me the recent financial position is not deteriorating. But when I look deeper, I hesitate. Sales growth is only 0.21%. A business cannot create lasting value for owners if its top line is essentially flat. The profit growth of 8.97% is decent, but modest for a company trading at a P/E of 20.32. The market is paying ₹4,855 Cr, or 4.49 times book value of ₹56.38 per share, for a logistics operator with Debt/Equity of 1.01. That is a high price for a leveraged, low-growth business. The PEG ratio of 3.00 reinforces my concern: I am not being paid to wait. ROCE of 15.73% is acceptable, but not outstanding, especially when debt is part of the equation. The dividend yield of 2.70% offers some comfort, but it is not enough to compensate for valuation risk. FairStock Score of 27/100 labels the stock risky. In the words of Graham, price is what you pay and value is what you get. Here I doubt I get enough value for the price. I would wait for either a better price, or visible acceleration in sales growth, before treating VRL Logistics as an investment. It is a quality-ish business, but not a compelling bargain today.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer