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Estimated Discount To Fair Value: 40.3%

Mahindra Logistics, valued at ₹479.85, is perceived as undervalued with its price 40.3% below the fair value of ₹803.95 based on cash flow analysis. Despite a challenging fiscal year with a significant net loss reported in Q4 2024, the company is forecasted to return to profitability within three years, outpacing average market growth expectations. Recent strategic moves include forming a joint venture focused on warehousing and trucking for Japanese auto firms in India, potentially bolstering future revenue streams which are expected to grow faster than the broader Indian market at 11.8% annually.

• The growth report we've compiled suggests that Mahindra Logistics' future prospects could be on the up.

• Take a closer look at Mahindra Logistics' balance sheet health here in our report.

VRL Logistics

Overview: VRL Logistics Limited is a logistics and transport company with operations in India and internationally, boasting a market cap of approximately ₹49.27 billion.

Operations: The primary revenue stream is generated from goods transport, contributing approximately ₹29.10 billion.

Estimated Discount To Fair Value: 10.2%

VRL Logistics, currently priced at ₹563.25, trades 10.2% under its calculated fair value of ₹627.41, indicating potential undervaluation based on cash flows. Despite recent earnings volatility with a significant drop in net income and EPS in Q4 2024 compared to the previous year, analysts project robust annual earnings growth of 30.5%, outstripping the Indian market's forecasted 15.9%. However, concerns linger over its unstable dividend track record and declining profit margins from 6.3% to 3.1%.

• Upon reviewing our latest growth report, VRL Logistics' projected financial performance appears quite optimistic.

• Delve into the full analysis health report here for a deeper understanding of VRL Logistics.

Next Steps

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NSEI:HEG NSEI:MAHLOG and NSEI:VRLLOG.

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