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

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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