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VRL Logistics is one of the leading surface logistics and parcel delivery service provider in India with its presence spread across 28 states and 4 union territories with branch network of approximately 624 branches in India. Apart from its logistics business, its other business segments include bus travel operation, wind power generation and air charting service.

VRL Logistics Ltd. reported a net profit of Rs 71.69 crore and total revenues of Rs 1,273.8 crore during 9M-FY15. The goods transportation business segment contributed approximately 76% of total revenues and bus transportation contributed approximately 20% during 9M-FY15. As of 31st December, 2015 the company’s Long Term Debt Equity ratio stood at 1.09 times.

Valuation and Investment Argument:
"At the offer price bands, the issue is available at P/E of 17.4x –18.3x its 9M-FY15 EPS (annualized) of Rs 11.2. We believe the growth prospects for India’s road transport to improve as the government takes steps to increase investment in national highways. The company’s internal strengths such as large fleet of owned vehicles, wide distribution network & diversified customer base will enable the company to ride this wave of opportunity successfully. Hence we recommend Subscribe to this issue", says Way2Wealth research report.