Paradeep Parivahan Limited

Industrials — Integrated Freight & Logistics · BSE

₹299.85+₹0.50 (+0.17%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

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, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Paradeep Parivahan Limited provides cargo handling, port operation, imported cargo handling and transportation, and intra-port transportation services in India. The company operated through four segments: Trading of Other Items; Hiring of earth moving Equipment; Loading.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees1,159

Annual revenue₹419 Cr

How does it make money?

Turns over ₹419 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 1,159 employees supports ₹36.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹36.1 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 27.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.1% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +107% while net margin moved +148% 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+107%

Margin effect+148%

DalalBaazaar Score

66/ 100

Good

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

74/ 100

Good

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

Valuation

70/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.2x

2Y Median

9.3x

21 monthly readings · mean 10.0x · range 6.0x–14.2x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 54% above its 2y median of 9.3x. 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 84% below the peer median of 88.8x.

vs. its own history

Expensive

9.3x median over 21 months · +54%

vs. sector peers

Cheap

88.8x median of 3 peers · -84%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.3x

PEG

0.20

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 12.5% to 14.3% over 3 years.
High return on capital employed
ROCE of 27.3% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 618% against revenue up 107% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 33% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 12.5% to 14.3%. 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 84% 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 54% 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.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 21% a year✓ 27.4% CAGR
Latest reported year was 18.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 27.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹340 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.2x

Cheap

Cheap against the generic band

P/B Ratio

2.90x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹21.09

Profitable

Profitable on a per-share basis

ROE

23.1%

Strong

Strong capital efficiency

ROCE

27.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

18.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-37.3%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

12.1%

Good

Assets are working hard

Operating Margin

11.4%

Average

Average margins

Net Margin

8.0%

Average

Average bottom-line conversion

Current Ratio

2.17

Comfortable

Healthy short-term liquidity

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

300.3 / 288.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹202 Cr	₹211 Cr	₹336 Cr	₹419 Cr	+27.4%
EBITDA	₹25 Cr	₹35 Cr	₹43 Cr	₹60 Cr	+33.2%
EBITDA Margin	12.5%	16.6%	12.8%	14.3%	—
PAT (Net Profit)	₹7 Cr	₹15 Cr	₹24 Cr	₹34 Cr	+72.4%
EPS	₹4.12	₹9.18	₹21.15	—	—
ROE	18.9%	25.3%	19.1%	20.4%	—
ROCE	26.9%	31.0%	21.3%	27.3%	—
Total Debt	₹53 Cr	₹44 Cr	₹75 Cr	₹70 Cr	+9.9%
Free Cash Flow	₹15 Cr	-₹8 Cr	-₹7 Cr	-₹12 Cr	—

🟢 Revenue has grown at 27.4% a year over 3 years.

🟢 EBITDA has grown at 33.2% a year over 3 years.

🟢 EBITDA Margin has risen from 12.5% to 14.3% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 72.4% a year over 3 years.

🟢 ROE has risen from 18.9% to 20.4% over 3 years (+1.5 pts).

🟡 ROCE has held roughly flat at 27.3% over 3 years.

🔴 Total Debt has grown at 9.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹15 Cr to -₹12 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹275 Cr

Total Liabilities

₹111 Cr

Cash & Equivalents

₹31 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

76.2%

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 mixed5 general

Paradeep Parivahan (BSE:544383) - Stock Analysis

Simply Wall Street, 12 Oct

Paradeep Parivahan (PPARIVAH) Share Price rises 12.52% as market cap stands at Rs 481.12 Cr

Univest, 12 OctPrice 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.

Paradeep Parivahan Limited Commence Deployment of ~45 EIM Ashwa 4x2, 55-Tonne Electric Heavy-Duty Tractor Trailers for UltraTech Cement Ltd.

TheWire.in, 17 Jun

PARADEEP PARIVAHAN LIMITED Share Price

Upstox, 05 May

Paradeep Parivahan AGM approves ₹300 crore borrowing limit

scanx.trade, 26 Aug

EIM and Paradeep Parivahan commence deployment of electric heavy-duty trucks for UltraTech Cement

Business Standard, 17 Jun

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑