Snowman Logistics Limited

Industrials — Integrated Freight & Logistics · NSE

₹34.50+₹0.15 (+0.44%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, 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 modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Snowman Logistics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Snowman Logistics Limited provides temperature-controlled warehousing and distribution services in India. The company operates through three segments: Warehousing Services, Transportation Services, and Trading and Distribution.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees532

Annual revenue₹604 Cr

How does it make money?

Turns over ₹604 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 532 employees supports ₹1.14 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin15.8%

Net margin0.5%

Revenue / employee₹1.14 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?Little sign of one

Returns on capital of 3.5% 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.

ROCE3.5%

ROE0.8%

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 +45% while net margin moved -83% 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+45%

Margin effect-83%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.8% is weak

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

47/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

111.3x

3Y Median

97.0x

40 monthly readings · mean 103.9x · range 58.9x–186.5x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 15% above its 3y median of 97.0x. 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 25% above the peer median of 88.8x.

vs. its own history

Fair

97.0x median over 40 months · +15%

vs. sector peers

Expensive

88.8x median of 3 peers · +25%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

111.3x

P/B

1.44x

EV/EBITDA

9.2x

PEG

—

Dividend Yield

1.45%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 22.1% to 15.8% over 3 years.
Return on capital is falling
ROCE has declined from 6.8% to 3.5% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 74% against revenue growth of 45% — stock may not be moving.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.9x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.4 points, from 22.1% to 15.8%.
🟡Profit is decliningFinancial
Net profit is down 75% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 74% against revenue up 45% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 22.1% to 15.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 25% above the peer median. That premium needs a reason that persists, or it closes.
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
2 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 10% a year✓ 13.1% CAGR
Latest reported year was 9.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 0.9x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹69 Cr
Profit that never becomes cash eventually stops being profit.

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

4 good · 4 neutral · 3 weak

Market Cap

₹577 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

111.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.31

Profitable

Profitable on a per-share basis

ROE

0.8%

Weak

Weak capital efficiency

ROCE

3.5%

Weak

Low return on total capital employed

Debt/Equity

0.78x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.2%

Modest

Modest growth

Profit Growth (YoY)

80.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.45%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹69 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹34.5

P/E (Forward)

24.6x

Improving

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

Operating Margin

6.3%

Average

Average margins

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

34.6 / 36.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹418 Cr	₹503 Cr	₹553 Cr	₹604 Cr	+13.1%
EBITDA	₹92 Cr	₹106 Cr	₹94 Cr	₹95 Cr	+1.0%
EBITDA Margin	22.1%	21.0%	16.9%	15.8%	—
PAT (Net Profit)	₹13 Cr	₹13 Cr	₹6 Cr	₹3 Cr	-37.3%
EPS	₹0.8	₹0.76	₹0.34	₹0.2	-37.0%
ROE	3.2%	3.0%	1.4%	0.8%	—
ROCE	6.8%	7.5%	4.5%	3.5%	—
Total Debt	₹258 Cr	₹278 Cr	₹307 Cr	₹312 Cr	+6.5%
Free Cash Flow	₹69 Cr	₹52 Cr	-₹22 Cr	₹69 Cr	+0.3%

🟢 Revenue has grown at 13.1% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.0% a year).

🔴 EBITDA Margin has fallen from 22.1% to 15.8% over 3 years (-6.4 pts).

🔴 PAT (Net Profit) has shrunk at 37.3% a year over 3 years.

🔴 EPS has shrunk at 37.0% a year over 3 years.

🔴 ROE has fallen from 3.2% to 0.8% over 3 years (-2.4 pts).

🔴 ROCE has fallen from 6.8% to 3.5% over 3 years (-3.2 pts).

🔴 Total Debt has grown at 6.5% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (0.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹779 Cr

Total Liabilities

₹377 Cr

Total Debt

₹312 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹98 Cr

Capex

-₹29 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

54.2%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

12 Feb 2026

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

2 positive3 mixed1 general

Snowman Logistics shares jump 9% after Q1 profit surges 79%, margins improve

CNBC TV18, 05 AugResults

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

Why Is Snowman Logistics Share Price Falling Key Reasons 2026

Univest, 01 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.

Should You Buy Snowman Logistics Limited (NSE:SNOWMAN) For Its Upcoming Dividend?

Simply Wall Street, 09 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Snowman Logistics gains as Q1 PAT jumps 79% YoY to Rs 5 cr

Business Standard, 05 AugResults

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

Snowman Logistics to Host Q1 Earnings Call on August 5 at 4 PM IST

scanx.trade, 05 AugResults

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

Snowman Logistics expands footprint with new temperature-controlled warehouse in Patna, details here

Alice Blue, 13 Mar

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate11.7/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair8.3/15

🟡RiskModerate5.2/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 10% a year13.1% CAGR
✓EBITDA margin holds above 14%15.8%
✗Debt / EBITDA falls below 3x3.3x
✗Interest cover stays above 3x0.9x
✓Free cash flow remains positive₹69 Cr