Navkar Corporation Limited

Industrials — Integrated Freight & Logistics · NSE

₹85.00−₹0.12 (−0.14%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Navkar Corporation Limited provides container freight station, inland container depot, rail terminal, container train operator, and warehousing and other logistics solutions in India.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees449

Annual revenue₹676 Cr

How does it make money?

Turns over ₹676 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 449 employees supports ₹1.51 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.51 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 3.1% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +53% while net margin moved -79% 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+53%

Margin effect-79%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.5% is weak
✗ ROE has fallen by 3.1 points over the period

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

59/ 100

Fair

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

31.8x

3Y Median

17.5x

40 monthly readings · mean 20.2x · range 9.5x–48.0x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 82% above its 3y median of 17.5x. 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 64% below the peer median of 88.8x.

vs. its own history

Expensive

17.5x median over 40 months · +82%

vs. sector peers

Cheap

88.8x median of 3 peers · -64%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 4.7% to 1.5% — each rupee of shareholder capital earns less than it did.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 658% over 3 years, from ₹23 Cr to ₹177 Cr.
🔴High leverageFinancial
Debt/Equity of 9.05x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.5 points, from 24.4% to 17.9%.
🔴Receivables growing faster than salesFinancial
Receivables up 453% against revenue up 53% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 128% against revenue up 53% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 67% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 64% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 24.4% to 17.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 9.05x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 453% against revenue up 53%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 82% 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 4.7% to 1.5%. 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.

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

1Revenue growth stays above 11% a year✓ 15.3% CAGR
Latest reported year was 38.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹22 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 3.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹1,279 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.65x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.67

Profitable

Profitable on a per-share basis

ROE

1.5%

Weak

Weak capital efficiency

ROCE

3.1%

Weak

Low return on total capital employed

Debt/Equity

9.05x

High

High leverage

Revenue Growth (YoY)

38.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

412.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹22 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

6.7x

Improving

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

Operating Margin

10.2%

Average

Average margins

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

1.60

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

86.2 / 92.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹442 Cr	₹429 Cr	₹476 Cr	₹676 Cr	+15.3%
EBITDA	₹108 Cr	₹63 Cr	₹10 Cr	₹121 Cr	+4.0%
EBITDA Margin	24.4%	14.6%	2.0%	17.9%	—
PAT (Net Profit)	₹92 Cr	-₹2 Cr	-₹45 Cr	₹30 Cr	-31.2%
EPS	₹6.15	₹-0.12	₹-3.01	₹2	-31.2%
ROE	4.7%	-0.1%	-2.3%	1.5%	—
ROCE	4.3%	1.0%	-2.4%	3.1%	—
Total Debt	₹23 Cr	₹196 Cr	₹168 Cr	₹177 Cr	+96.4%
Free Cash Flow	-₹217 Cr	-₹243 Cr	₹58 Cr	₹22 Cr	—

🟢 Revenue has grown at 15.3% a year over 3 years.

🟢 EBITDA has grown at 4.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 24.4% to 17.9% over 3 years (-6.5 pts).

🔴 PAT (Net Profit) has shrunk at 31.2% a year over 3 years.

🔴 EPS has shrunk at 31.2% a year over 3 years.

🔴 ROE has fallen from 4.7% to 1.5% over 3 years (-3.1 pts).

🔴 ROCE has fallen from 4.3% to 3.1% over 3 years (-1.2 pts).

🔴 Total Debt has grown at 96.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹217 Cr to ₹22 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,210 Cr

Total Liabilities

₹252 Cr

Cash & Equivalents

₹15 Cr

Operating Cash Flow

₹77 Cr

Capex

-₹55 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

70.4%

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 positive3 mixed2 general

Navkar Corporation Share Price

Upstox, 16 Oct

Navkar Corporation reports turnaround Q4 numbers

Business Standard, 20 AprResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Why Is Navkar Corporation Share Price Falling Key Reasons 2026

Univest, 18 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Navkar Corporation Q1 net profit surges 402% to ₹122.81 crore

scanx.trade, 17 JulResults

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

Navkar Corporation Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Navkar Corporation posts 6x jump in Q1 profit on 38% revenue growth, higher EBITDA

CNBC TV18, 17 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth · Valuation

WeakProfitability · 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. 5 high-severity red flags sit above this conclusion and should be read first.

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