Allcargo Logistics Limited

Industrials — Integrated Freight & Logistics · NSE

₹10.36−₹0.18 (−1.71%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Allcargo Logistics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Allcargo Logistics Limited provides integrated logistics solutions in India.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees2,675

Annual revenue₹2,055 Cr

How does it make money?

Turns over ₹2,055 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 2,675 employees supports ₹76.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹76.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 6.4% and earnings to grow about 0.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+6.4%

Est. earnings growth+0.0%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -89% while net margin moved -89% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-89%

Margin effect-89%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 51.5% a year
✗ Profit has declined at 76.7% a year
✗ Latest-year revenue growth of -85.7% is below the longer-term trend — momentum is fading
✗ Profit fell 87.7% in the latest year

Quality vs. Valuation

Company Quality

37/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

60.9x

3Y Median

21.2x

40 monthly readings · mean 44.0x · range 9.4x–239.0x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 188% above its 3y median of 21.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 31% below the peer median of 88.8x.

vs. its own history

Expensive

21.2x median over 40 months · +188%

vs. sector peers

Cheap

88.8x median of 3 peers · -31%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

8.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 7.1% to 12.9% over 3 years.
Debt is being paid down
Total debt is down 41% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.4% to 1.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.3% to 6.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 99% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 52% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.1% to 12.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 41% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 31% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 188% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 22.4% to 1.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹291 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹1,552 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

60.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.78x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.17

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

6.0%

Weak

Low return on total capital employed

Debt/Equity

1.21x

Moderate

Moderate leverage

Revenue Growth (YoY)

-85.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-87.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹291 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

10.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.7%

Weak

Thin margins leave little room for error

Net Margin

1.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.06

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.81

Market-like

Moves roughly in line with the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

10.6 / 11.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹18,015 Cr	₹12,941 Cr	₹1,959 Cr	₹2,055 Cr	-51.5%
EBITDA	₹1,282 Cr	₹624 Cr	₹245 Cr	₹265 Cr	-40.9%
EBITDA Margin	7.1%	4.8%	12.5%	12.9%	—
PAT (Net Profit)	₹630 Cr	₹150 Cr	₹65 Cr	₹8 Cr	-76.7%
EPS	₹6.41	₹1.52	₹0.43	₹0.05	-80.2%
ROE	22.4%	5.9%	11.6%	1.4%	—
ROCE	24.3%	7.6%	8.5%	6.0%	—
Total Debt	₹1,180 Cr	₹1,846 Cr	₹781 Cr	₹693 Cr	-16.2%
Free Cash Flow	₹1,481 Cr	-₹294 Cr	₹251 Cr	₹291 Cr	-41.9%

🔴 Revenue has shrunk at 51.5% a year over 3 years.

🔴 EBITDA has shrunk at 40.9% a year over 3 years.

🟢 EBITDA Margin has risen from 7.1% to 12.9% over 3 years (+5.8 pts).

🔴 PAT (Net Profit) has shrunk at 76.7% a year over 3 years.

🔴 EPS has shrunk at 80.2% a year over 3 years.

🔴 ROE has fallen from 22.4% to 1.4% over 3 years (-21.0 pts).

🔴 ROCE has fallen from 24.3% to 6.0% over 3 years (-18.3 pts).

🟢 Total Debt has shrunk at 16.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 41.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,736 Cr

Total Liabilities

₹1,162 Cr

Cash & Equivalents

₹73 Cr

Operating Cash Flow

₹315 Cr

Capex

-₹24 Cr

Shareholding (proxy)

Institutional Holding

5.4%

Insider Holding

45.5%

Corporate Actions

Ex-Dividend Date

25 Oct 2024

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive1 mixed4 general

Allcargo Logistics Approves Investment in Allcargo Group Services Private Limited via Private Placement

scanx.trade, 14 Oct

Allcargo Logistics shares rally 15% after Q1 profit jumps 258% YoY to Rs 31 crore

The Economic Times, 06 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Allcargo Soars 16%, Morepen Jumps; Vi, PC Jeweller Slip

HDFC Sky, 06 Aug

Allcargo Logistics Share Price Update With Valuation View

Univest, 21 Aug

Allcargo Logistics shares up 20% in three sessions, could well have their best month on record

CNBC TV18, 21 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Are Allcargo Logistics Limited's (NSE:ALLCARGO) Mixed Financials The Reason For Its Gloomy Performance on The Stock Market?

Simply Wall Street, 13 Feb

Watch Items

Revenue growth is negative (-85.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑