Shadowfax Technologies Limited

Industrials — Integrated Freight & Logistics · NSE

₹289.10+₹3.20 (+1.12%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by small-cap size, which brings sharper price swings, 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, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shadowfax Technologies Limited operates as a technology-led third-party logistics company in India.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees5,427

Annual revenue₹4,202 Cr

How does it make money?

Turns over ₹4,202 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 5,427 employees supports ₹77.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹77.4 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 6.7% 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?

6 analysts covering the stock expect revenue to grow about 28.6% and earnings to grow about 53.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+28.6%

Est. earnings growth+53.1%

Analysts6

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 +197% while net margin moved -126% 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+197%

Margin effect-126%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 93.3x is demanding — it needs sustained high growth to justify
✗ P/B of 9.74x is a steep premium to book

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

37/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

93.3x

Sector Median

88.8x

median of 3 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

88.8x median of 3 peers · +5%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

32.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -3.1% to 12.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -80.9% to 6.4%.
Return on capital is rising
ROCE has improved from -61.4% to 6.7%.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 270% over 3 years, from ₹67 Cr to ₹247 Cr.
🟡Receivables growing faster than salesFinancial
Receivables up 227% against revenue up 197% — 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 -3.1% to 12.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹165 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 227% against revenue up 197%. 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
Small 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 33% a year✓ 43.7% CAGR
Latest reported year was 64.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹165 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹16,915 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

93.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.74x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹3.1

Profitable

Profitable on a per-share basis

ROE

6.4%

Weak

Weak capital efficiency

ROCE

6.7%

Weak

Low return on total capital employed

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

64.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

633.3%

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

₹165 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

39.3x

Improving

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

Operating Margin

3.8%

Weak

Thin margins leave little room for error

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.84

Comfortable

Healthy short-term liquidity

52W Range Position

93%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

284.1 / 264.7

Bullish alignment (short > long)

RSI (14)

54.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,415 Cr	₹1,885 Cr	₹2,485 Cr	₹4,202 Cr	+43.7%
EBITDA	-₹44 Cr	₹109 Cr	₹204 Cr	₹527 Cr	—
EBITDA Margin	-3.1%	5.8%	8.2%	12.5%	—
PAT (Net Profit)	-₹143 Cr	-₹12 Cr	₹6 Cr	₹112 Cr	—
EPS	₹-2.47	₹-0.21	₹0.11	₹2.18	—
ROE	-80.9%	-2.8%	1.0%	6.4%	—
ROCE	-61.4%	-1.1%	2.7%	6.7%	—
Total Debt	₹67 Cr	₹40 Cr	₹132 Cr	₹247 Cr	+54.7%
Free Cash Flow	-₹120 Cr	₹78 Cr	-₹36 Cr	₹165 Cr	—

🟢 Revenue has grown at 43.7% a year over 3 years.

🟢 EBITDA has turned positive, from -₹44 Cr to ₹527 Cr.

🟢 EBITDA Margin has risen from -3.1% to 12.5% over 3 years (+15.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹143 Cr to ₹112 Cr.

🟢 EPS has turned positive, from ₹-2.47 to ₹2.18.

🟢 ROE has risen from -80.9% to 6.4% over 3 years (+87.3 pts).

🟢 ROCE has risen from -61.4% to 6.7% over 3 years (+68.1 pts).

🔴 Total Debt has grown at 54.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹120 Cr to ₹165 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,834 Cr

Total Liabilities

₹1,089 Cr

Cash & Equivalents

₹284 Cr

Operating Cash Flow

₹350 Cr

Capex

-₹185 Cr

Shareholding (proxy)

Institutional Holding

38.3%

Insider Holding

32.2%

Analyst Consensus

Recommendations

6 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹311.83

+7.9% vs CMP

Target Range

₹280 – ₹350

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

3 mixed3 general

Shadowfax Technologies Share Price rise and valuation view

Univest, 05 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.

Shadowfax Technologies shares jump 137% from IPO price; ICICI Securities sees 15% upside | Should you buy?

Livemint, 08 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.

Why Shadowfax’s stock nearly doubles since listing despite weak debut

Entrackr, 26 Jun

Shadowfax Technologies Share Price In Focus After Kotak Equities Assigns 'Add' Rating, Sees 10% Upside

NDTV Profit, 23 Sept

Shadowfax shares crash 7% on block deal buzz; Flipkart among likely sellers

Business Standard, 24 JulPrice 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.

Shadowfax Technologies Share Price

Upstox, 05 May

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given 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 ↑