Shree Vasu Logistics Ltd. engages in the provision of logistic services. It offers warehousing, packing, and logistics. The company was founded by Shree Bhushan Garg in 1987 and is headquartered in Raipur, India.

India

Shree Vasu Logistics Limited

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

SVLL.NS reported revenue of INR 1 461mn in the last 12 months, up 7% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 71% from FY24 to INR 1.90.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 79ppts and its growth decelerated by 10ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is favourable. This generally signifies that a stock is fairly valued or marginally undervalued abd is becoming more 'expensive', suggesting a short-term spike in confidence by the market at large.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 21.8% in the last 12 months, up from 21.2% in FY24. 

Historically, SVLL.NS has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 1.5%, a growth from 0.9% in FY24. 

Shree Vasu Logistics Limited reported a return on equity (RoE) of 6.4% in the last 12 months, up from 3.9% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to 1.2% in the last 12 months, an increase from 0.8% in FY24. 

In the last 12 months, the return on capital employed (RoCE) grew to 1.7%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.6 in the past several years. This ratio implies a weak shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

SVLL.NS has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, poor working capital management, and an unfavourable capital structure.

In highly turbulent market conditions, SVLL.NS is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, SVLL.NS is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from low to mild. We would also like to highlight the minimal intraday volatility of the instrument. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITD. 

Shree Vasu Logistics Limited

₹ 715

3

Shree Vasu Logistics Limited

₹ 715

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₹ 715

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