Shadowfax Technologies (SHADOWFAX)

FairStock Score: 23/100 — RISKY

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

Key Financials

Strengths

• Revenue growth of 65.52% shows strong business momentum
• Profit growth of 439.63% reflects improving earnings, albeit from a low base
• Piotroski F-Score of 7/9 suggests decent short-term financial health
• Debt/Equity of 0.21 keeps balance-sheet risk modest

Concerns

• P/E of 201 and P/B of 5.42 imply an extremely demanding valuation
• ROCE of only 4.38% and a net margin of roughly 3% indicate weak capital efficiency
• Promoter holding of just 16.71% raises governance and alignment concerns
• Zero dividend and FairStock Score of 23/100 highlight risk without income support

AI Analysis

Looking at Shadowfax, I see a logistics player growing fast—sales up 65.52%—but my Graham-trained mind stops at the price tag. At ₹154.75, the market capitalizes it at ₹7,004 Cr, yet trailing earnings justify a P/E of 201. That is not an investment; that is a hope. The latest quarter shows ₹1,160 Cr of revenue and only ₹35 Cr of net profit—a thin margin around 3%. For a capital-intensive logistics business, ROCE of 4.38% is far below what I'd demand. The balance sheet is manageable with debt/equity of 0.21, and Piotroski F-Score of 7/9 suggests short-term health, but that score rewards momentum as much as quality. The 439% profit growth sounds spectacular, but it starts from a small base; PEG of 0.80 is an illusion when the P/E denominator is so stretched. A 65% sales growth is appealing, but where is the moat? Logistics in India is brutally competitive, and with promoter holding at only 16.71%, my partners' interests are not tightly aligned with mine. No dividend, so my return depends entirely on continued hyper-growth—a fragile foundation. I cannot call this a wonderful business at a fair price. It is a fast grower, but one that demands perfection. If the company can convert scale into higher margins, improve ROCE toward mid-teens, and show consistent free cash flow, I'd revisit. But at 201 times earnings, the market is discounting a future that may not arrive. Better to watch from the sidelines.

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