Gconnect Logitech and Supply Chain Limited

Industrials — Integrated Freight & Logistics · BSE

₹11.22₹0.00 (0.00%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index, falling profits.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gconnect Logitech and Supply Chain Limited provides surface logistics and transportation services in India.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees4

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹1.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.01 Cr

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 3.6% 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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +300% while net margin moved -50% 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+300%

Margin effect-50%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.79 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

84/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

19.0x

3Y Median

32.6x

32 monthly readings · mean 59.4x · range 13.3x–294.6x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 42% below its 3y median of 32.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 79% below the peer median of 88.8x.

vs. its own history

Cheap

32.6x median over 32 months · -42%

vs. sector peers

Cheap

88.8x median of 3 peers · -79%

vs. generic bands

Fair

15x–35x

EV/EBITDA

4.7x

PEG

0.73

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 14.3% to 19.3% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive 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 14.0% to 2.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.7% to 3.6% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 967% against revenue up 300% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.3% to 19.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 42% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 79% 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?

Sales are being booked faster than collected
Receivables are up 967% against revenue up 300%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 14.0% to 2.3%. 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.
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

1Revenue growth stays above 44% a year✓ 58.8% CAGR
Latest reported year was -29.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 3.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 32.6x✓ 19.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

3 good · 4 neutral · 4 weak

Market Cap

₹4 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.59

Profitable

Profitable on a per-share basis

ROE

2.3%

Weak

Weak capital efficiency

ROCE

3.6%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-29.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-46.9%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

2.1%

Weak

Assets generate little profit

Operating Margin

6.3%

Average

Average margins

Net Margin

5.3%

Average

Average bottom-line conversion

Current Ratio

28.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.79

High swing

Swings more than the market in both directions

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

11.4 / 12.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹4 Cr	₹5 Cr	₹4 Cr	+58.8%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+75.2%
EBITDA Margin	14.3%	11.5%	21.9%	19.3%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+26.1%
EPS	₹0.29	₹0.64	₹0.75	—	—
ROE	14.0%	6.0%	3.0%	2.3%	—
ROCE	18.7%	8.2%	4.8%	3.6%	—
Free Cash Flow	-₹1 Cr	-₹3 Cr	-₹6 Cr	₹1 Cr	—

🟢 Revenue has grown at 58.8% a year over 3 years.

🟢 EBITDA has grown at 75.2% a year over 3 years.

🟢 EBITDA Margin has risen from 14.3% to 19.3% over 3 years (+4.9 pts).

🟢 PAT (Net Profit) has grown at 26.1% a year over 3 years.

🔴 ROE has fallen from 14.0% to 2.3% over 3 years (-11.7 pts).

🔴 ROCE has fallen from 18.7% to 3.6% over 3 years (-15.1 pts).

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹10 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

51.2%

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 negative5 general

Gconnect Logitech FY26 Results: Revenue falls 13% to ₹404 lakh, PAT down 22%

scanx.trade, 08 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Gconnect Logitech And Supply Chain Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Gconnect Logitech and Supply C Share Price

Upstox, 05 May

RAJVI LOGITRADE LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 12 Oct

Gconnect Logitech And Supply Chain Ltd Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 27 Aug

Gconnect Logitech approves ₹41 crore rights issue, appoints independent director

scanx.trade, 16 Sept

Watch Items

Revenue growth is negative (-29.8%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑