Dhillon Freight (544556)

Score breakdown: P/E: 3/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Trades at a low P/E of 6.58 with a PEG of 0.17, indicating a cheap valuation relative to earnings growth
• ROCE of 30.09% demonstrates efficient use of capital
• Piotroski F-score of 7/9 points to solid financial health and improving fundamentals
• Reported 50% profit growth and latest quarter sales of ₹14 Cr with net profit of ₹1 Cr show current profitability

Concerns

• Sales growth is only 0.73%, so the 50% profit growth is not supported by topline expansion
• Critical data missing: book value, debt/equity, promoter holding, 52-week range; FairStock says insufficient data
• Market cap of ₹13 Cr makes this a micro-cap with likely low liquidity and higher volatility
• No dividend yield, so shareholders must rely entirely on future capital appreciation

AI Analysis

I have always said that price is what you pay, value is what you get. At ₹32.05, with a market cap of only ₹13 crore, Dhillon Freight looks like a business the market has almost ignored. A P/E of 6.58 and a PEG of 0.17 tell me the stock is priced far below expectations. A 50% profit growth and a 30.09% ROCE add to the appeal; this is not a capital-hungry, low-quality operation. The Piotroski score of 7 out of 9 also suggests the fundamentals are sound. But let me not get carried away. Sales grew only 0.73%. If revenue does not grow, earnings growth from margin improvement alone will hit a wall. The latest quarter shows ₹14 crore of sales and ₹1 crore of net profit—roughly a 7% margin, which is okay, but not a wide moat. Logistics is a competitive, low-barrier business; I see no pricing power or durable competitive advantage in these numbers. What worries me even more is what is missing. Book value, debt/equity, promoter holding, and even the 52-week range are not available. The FairStock score itself says insufficient data. I cannot judge the balance sheet or governance. In Graham's terms, this is not a margin of safety; it is a leap of faith. A ₹13 crore micro-cap also brings liquidity risk, and with no dividend, I am asked to wait for capital gains on an unknown horizon. I would not buy today. I would watch. If Dhillon Freight can turn that profit growth into real revenue growth, keep ROCE above 30%, and reveal a clean balance sheet, then my interest would grow. Until then, this remains a small-cap curiosity, not a conclusion.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer