Neptune Logitek Limited

Industrials — Integrated Freight & Logistics · BSE

₹32.50−₹0.33 (−1.01%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:05 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Neptune Logitek Limited provides logistics and supply chain services in India and internationally. The company engages in the business of transportation, freight forwarding, and integrated logistics solutions.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees108

Annual revenue₹234 Cr

How does it make money?

Turns over ₹234 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 108 employees supports ₹2.16 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.4%

Net margin2.7%

Revenue / employee₹2.16 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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 15.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.1%

ROE14.3%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +26% while net margin moved -2883% 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+26%

Margin effect-2883%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

80/ 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

7.1x

1.0Y Median

8.0x

12 monthly readings · mean 8.6x · range 6.7x–14.5x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 12% below its 1.0y median of 8.0x. 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 92% below the peer median of 88.8x.

vs. its own history

Fair

8.0x median over 12 months · -12%

vs. sector peers

Cheap

88.8x median of 3 peers · -92%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.1x

P/B

0.66x

EV/EBITDA

5.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 2.2% to 7.4% over 3 years.
Return on equity is rising
ROE has improved from -1.7% to 9.3%.
Return on capital is rising
ROCE has improved from 7.1% to 15.1%.

🔴 What Needs Attention4

Debt is rising
Total debt is up 39% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 56% against revenue growth of 26% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 134% against revenue growth of 26% — stock may not be moving.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Inventory building faster than salesFinancial
Inventory up 134% against revenue up 26% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 39% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹26 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 56% against revenue up 26% — 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 2.2% to 7.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 92% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 56% against revenue up 26%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹26 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 6% a year✓ 8.0% CAGR
Latest reported year was -20.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

5 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.1x

Cheap

Cheap against the generic band

P/B Ratio

0.66x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.59

Profitable

Profitable on a per-share basis

ROE

14.3%

Moderate

Moderate capital efficiency

ROCE

15.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.78x

Moderate

Moderate leverage

Revenue Growth (YoY)

-20.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-70.4%

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

-₹33 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹32.5

ROA

6.6%

Average

Average asset productivity

Operating Margin

5.5%

Average

Average margins

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.42

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

33.9 / 34.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹185 Cr	₹175 Cr	₹257 Cr	₹234 Cr	+8.0%
EBITDA	₹4 Cr	₹9 Cr	₹21 Cr	₹17 Cr	+63.1%
EBITDA Margin	2.2%	5.2%	8.2%	7.4%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹7 Cr	₹6 Cr	—
EPS	₹-0.13	₹0	₹4.87	—	—
ROE	-1.7%	0.0%	33.4%	9.3%	—
ROCE	7.1%	7.7%	29.0%	15.1%	—
Total Debt	₹38 Cr	₹62 Cr	₹58 Cr	₹53 Cr	+11.5%
Free Cash Flow	-₹19 Cr	-₹25 Cr	₹7 Cr	-₹26 Cr	—

🟢 Revenue has grown at 8.0% a year over 3 years.

🟢 EBITDA has grown at 63.1% a year over 3 years.

🟢 EBITDA Margin has risen from 2.2% to 7.4% over 3 years (+5.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹6 Cr.

🟢 ROE has risen from -1.7% to 9.3% over 3 years (+10.9 pts).

🟢 ROCE has risen from 7.1% to 15.1% over 3 years (+8.1 pts).

🔴 Total Debt has grown at 11.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹163 Cr

Total Liabilities

₹95 Cr

Total Debt

₹53 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹30 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.5%

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

Neptune Logitek fined ₹11,800 by BSE for voting result delay

scanx.trade, 15 OctRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Compare with

Equitymaster, 17 Oct

NEPTUNE LOGITEK LIMITED Share Price - Live NEPLOG Stock Price & Chart

Upstox, 05 May

Neptune Logitek (BSE:544663) - Stock Analysis

Simply Wall Street, 21 Dec

Neptune Logitek IPO GMP, Grey Market Premium Today

IPO Watch, 04 Dec

IPO market next week: Four new initial public offerings worth Rs 830 crore in fray; KSH International, Ne

The Times of India, 13 Dec

Watch Items

Revenue growth is negative (-20.2%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟡Financial HealthAdequate10.5/20

🟡GrowthModest10.6/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive11.8/15

🔴RiskHigh2.5/10

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.

This thesis breaks if

✓EBITDA margin holds above 5%7.4%
✗Debt / EBITDA falls below 3x3.0x
✗Free cash flow remains positive-₹26 Cr
✓Interest cover stays above 3x3.0x
✓Revenue growth stays above 6% a year8.0% CAGR