At a Glance
VRL is the OG of organized parcel logistics in India, riding with its own trucks when others lease. With improving margins, a 1:1 bonus, and stable ROCE/ROE, the financial engine is humming. But top-line growth remains stuck in traffic — is this a compounding cruiser or a slow-moving bullock cart?
1. 🚚 WTF Do They Even Do?
- VRL Logistics Ltd operates in Less Than Truckload (LTL) road transport — a segment where goods from multiple customers are consolidated in one truck.
- It owns over 5,000 vehicles, making it the largest fleet-owning logistics player in India.
- Revenue mix:
- 💼 Parcel & Courier Services – Core biz (~80%)
- 🚌 Bus Transport – Phased out
- 🔌 Windmills – Side hustle
- ✈️ Aviation – Yes, they had a charter service (exited)
- Think of it as the “DTDC of trucks”—but owning every truck in the game.
2. 💸 Financials – Profit, Margins, ROE, Growth
| Metric | FY21 | FY23 | FY25 |
|---|---|---|---|
| Revenue (Cr) | ₹1,763 | ₹2,649 | ₹3,161 |
| Net Profit (Cr) | ₹45 | ₹323 | ₹183 |
| EBITDA Margin | 14% | 15% | 18% |
| ROE (%) | 5% | 36.6% | 18% |
| EPS (₹) | ₹5.10 | ₹36.58 | ₹20.91 |
| 3Y Profit CAGR | — | — | 5% |
| 1Y Stock Return | — | — | 3% |
📈 Margin expansion is 🔥
📉 But FY25 profit down YoY from FY23 highs
3. 💰 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹607
- P/E: 29x
- P/B: 4.9x
- Dividend Yield: 0.82%
- Market Cap: ₹5,306 Cr
- EPS (FY25): ₹20.91
🧠 EduInvesting FV Range:
vbnetCopyEditBase Case (18x EPS) = ₹375
Mid Case (22x EPS) = ₹460
Optimistic (25x EPS) = ₹520
🎯 Fair Value Range: ₹375 – ₹520
At ₹607, you’re paying for future parcel explosions + organized logistics shift
4. 🔥 What’s Cooking – News, Triggers, Drama
- 🎁 1:1 Bonus Announced – stock may get retail frenzy bump
- 🚚 Margins touched 23% in Q4 FY25 – record high!
- 💼 Tonnage growth and fuel efficiency gains through automation
- 🏗 Capex for building transshipment hubs and owned depots
- ❗ Promoter stake fell 9.35% over 3 years – quiet offloading?
- 📉 FY25 profit down 43% from FY23 despite revenue growth
5. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 | ₹ Cr |
|---|---|
| Net Worth | ₹1,084 |
| Total Debt | ₹1,226 ❌ |
| D/E Ratio | 1.13x ❌ |
| Total Assets | ₹2,586 |
| Gross Block | ₹2,243 |
🛑 High leverage – aggressive vehicle ownership model
✅ Fixed asset base = control, but not nimble like Delhivery
6. 💵 Cash Flow – Sab Number Game Hai
| FY25 | ₹ Cr |
|---|---|
| Operating CF | ₹558 ✅ |
| Investing CF | ₹-430 ❌ |
| Financing CF | ₹-93 |
| Net Cash Flow | ₹+35 |
🧮 Generates cash consistently, but capex guzzles it up
💡 Capex is long-term strategic, not random 🪙
7. 📊 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 16.1% ✅ |
| ROE | 18.0% ✅ |
| OPM | 18.0% ✅ |
| Working Cap Days | 7 |
| Cash Conversion | 11 days 🥇 |
🚛 VRL is a working capital masterclass
🎯 Operates lean, milks its own assets
8. 📈 P&L Breakdown – Show Me the Money
- FY25 Revenue: ₹3,161 Cr
- EBITDA: ₹573 Cr
- PAT: ₹183 Cr
- EPS: ₹20.91
- Dividend Payout: 48%
- Bonus: 1:1 declared
✅ Improving per-ton margins
📉 No meaningful pricing power yet
9. 📐 Peer Comparison – Who Else in the Game?
| Company | Revenue | OPM | ROCE | P/E | Mcap |
|---|---|---|---|---|---|
| VRL Logistics | ₹3,161 | 18% | 16.1% | 29x | ₹5,306 Cr |
| TCI Ltd | ₹4,491 | 10.3% | 20.5% | 24x | ₹9,810 Cr |
| Blue Dart | ₹5,720 | 15.3% | 17.1% | 63x | ₹15,938 Cr |
| Delhivery | ₹8,931 | 4.2% | 2.7% | 185x | ₹30,978 Cr |
| CONCOR | ₹8,887 | 21.7% | 13.6% | 36x | ₹47,818 Cr |
📌 VRL stands tall on OPM
But lacks scale vs peers like TCI or CONCOR
Delhivery is the tech-fuelled hype beast with zero profits
10. 📎 Misc – Shareholding, Promoters, Institutions
| Stakeholder | FY22 | FY25 |
|---|---|---|
| Promoter | 69.6% | 60.2% ❌ |
| FII | 5.3% | 3.6% |
| DII | 13.6% | 25.3% ✅ |
| Public | 11.5% | 10.8% |
| Shareholders | ~56K | ~65K |
🎯 DII confidence = high
😶 Promoter reducing = slightly bearish signal
11. 🎭 EduInvesting Verdict™
VRL is India’s only serious listed LTL road logistics player with full control of its trucks.
✅ Efficient
✅ High margins
✅ Bonus + Dividends
❌ Revenue growth still “busesque”
This is a “cruiser compounder” — not sexy like Delhivery, but far more reliable.
🎯 Fair Value Range: ₹375 – ₹520
At ₹607, the price assumes you believe in Indian GST-driven logistics consolidation 2.0
Tags: VRL Logistics Bonus, LTL Logistics India, Surface Transport Stocks, VRL Dividend Yield, VRL EPS, EduInvesting, Indian Logistics Compounding
✍️ Written by Prashant | 📅 11 July 2025
