Snowman Logistic (SNOWMAN)

FairStock Score: 16/100 — RISKY

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

Key Financials

Strengths

• Sales growth of 9% shows existing demand for the logistics services.
• Promoter holding of 50.01% provides reasonable owner-management alignment.
• Debt/Equity of 0.80 is elevated but not extreme for an asset-heavy logistics business.
• Book value of ₹24.27 gives some asset backing; dividend yield of 2.53% suggests a distribution policy.
• P/B of 1.71 is not a huge premium compared to many Indian small-caps, though it is unjustified at current returns.

Concerns

• Negative ROE of -0.71% and latest quarterly net loss of ₹2 Cr indicate ongoing earnings weakness.
• ROCE of just 4.25% is too low to comfortably service debt of 0.80x equity; the company is not earning its cost of capital.
• Profit growth of -514.75% with positive sales growth suggests severe margin deterioration or rising costs.
• Piotroski F-Score of 4/9 and FairStock Score of 0/100 point to poor financial health and high risk.

AI Analysis

Let me start with the first question: what does this business earn on capital? Not much. Snowman Logistic produced a negative ROE of -0.71% and a ROCE of just 4.25%. With a debt-to-equity ratio of 0.80, the company is using borrowed money to generate returns lower than what a lender would demand. That is not a formula for value creation. Sales grew 9%, which shows the business can attract customers, but profit growth collapsed by -514.75%, and the latest quarter shows a net loss of ₹2 Cr on ₹144 Cr of sales. When revenue goes up and earnings go down like this, I smell deteriorating margins or expensive expansion. Either way, the P/E is meaningless—there is no earnings stream to capitalise. Book value is ₹24.27, and the stock trades at ₹41.46, a P/B of 1.71. For a company earning a negative return on book, paying a premium is the opposite of Graham's margin of safety. The Piotroski F-Score of 4/9 reinforces weak financial health. The 2.53% dividend yield looks friendly, but a business with negative net profit should not be relied upon to maintain that payout. Promoter holding at 50.01% is a positive—it aligns owners with management—but alignment cannot rescue poor economics. Is there a moat? At these numbers, no. A 4.25% ROCE suggests no pricing power and no competitive shield. This is not a stalwart or a grower. It is a possible turnaround, but only if operating metrics improve decisively. For now, I would keep this on the watchlist, not in the portfolio.

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