Jet Freight (JETFREIGHT)

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

Key Financials

Strengths

• Revenue growth of 20.23% shows topline momentum in the logistics business.
• ROCE at 10.70% is modestly above the company's borrowing costs, suggesting some operational efficiency.
• Book value of ₹13.97 provides an asset floor; P/B of 1.48 is not excessively high.
• Promoter holding at 50.92% aligns promoter interests with minority shareholders.

Concerns

• Profit growth is -30.77% despite 20.23% sales growth, showing poor conversion of revenue into earnings.
• Latest quarter net profit of ₹1 crore on ₹113 crore sales implies a very thin net margin.
• Debt/equity of 0.96 is high for a small logistics firm, increasing financial risk.
• Piotroski F-Score of 4/9 indicates weak financial health and earnings quality.

AI Analysis

Jet Freight is a small logistics player with a market cap of just ₹85 crore. In the Graham tradition, I first check for a margin of safety. At ₹20.71, the stock trades at 1.48 times book value and 21.92 times trailing earnings. That is not a bargain, especially when earnings per share are under ₹1 and profits have fallen by 30.77%. ROE is only 6.03%, return on capital employed is 10.70%, and debt-to-equity is 0.96. Borrowing at nearly one-to-one equity in a low-margin freight business is dangerous. The latest quarter earned just ₹1 crore net profit on ₹113 crore sales, a microscopic margin. The company does have a growth headline: sales up 20.23%. But growth in revenue without growth in profit is often value destruction. The PEG of 1.08 is misleading because it seems to rely on sales growth, not actual earnings growth. A Piotroski score of 4 out of 9 reinforces weak financial health. No dividend means the investor gets no cash while waiting for this story to play out. Logistics is a fiercely competitive, capital-dependent industry. I see no durable moat here. Freight volumes are cyclical. Promoter holding above 50% aligns some interests, but it does not create pricing power. At 1.48 times book and 21.9 times earnings, I cannot find a margin of safety. This is not a stalwart or a fast grower; it is a cyclical business with deteriorating earnings quality. I would keep it on the watchlist, not in the portfolio, until returns on equity improve, leverage comes down, and profit growth becomes real.

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