1. At a Glance
Cargosol Logistics is the kind of company that moves your cargo across oceans, clears your customs headaches, and then forgets to keep anything for itself. FY25 topline: ₹132 Cr. Bottomline: ₹0.06 Cr. That’s not a typo—it’s literally 6 lakhs, which wouldn’t even cover one Blue Dart executive’s bonus. The stock trades at a hilarious P/E of382×, making it look like the Tesla of logistics—but without the cars, rockets, or memes. Basically, this is a ₹22 Cr microcap trying to play in a ₹40,000 Cr Container Corp universe.
2. Introduction
If you thought logistics was boring, Cargosol will change your mind—because they’ve somehow managed to turn a freight business into a financial comedy show. Incorporated in 2011, the company built a network spanning India’s metro hubs and overseas branches in Dubai, Hong Kong, China, Canada, Thailand, and the UK. On paper, that sounds like DHL’s younger cousin. In reality, their profit margins are thinner than airline samosas.
FY25 revenue clocked in at ₹132 Cr, but PAT was a measly ₹0.06 Cr, leaving them with a net margin of0.05%—basically invisible. ROE? A tragic 0.27%. ROA? Don’t even ask. Meanwhile, debt is at ₹25 Cr, which means they’re running on leverage while barely breaking even. Yet, somehow, the stock pumped 26% in the last three months—because, well, retail loves a penny stock party.
3. Business Model (WTF Do They Even Do?)
Cargosol is a full-service freight forwarder. Translation: they’re the travel agents for your goods. Instead of planes and trains, they book your containers, clear your customs, and sometimes store your stuff.
Services include:
- Freight Forwarding (Sea & Air):Booking cargo space, both bulk and retail.
- Projects & Break Bulk:Handling awkward oversized items like turbines or wedding decorations.
- Customs Clearance:Talking to babus so you don’t have to.
- Transportation & Warehousing:Trucks + godowns = revenue trickle.
- NVOCC:Acting like a shipping line without actually owning ships.
Certifications? Yes, they’ve got ISO stamps and WCA membership badges. But here’s the kicker: 99% of their revenue is freight & handling income. Everything else is rounding error. So while the brochure screams “end-to-end logistics,” the P&L whispers “one-trick pony.”
4. Financials Overview
Q4FY25 vs YoY & QoQ:
| Metric | Latest Qtr (Mar 2025) | YoY Qtr (Mar 2024) | Prev Qtr (Sep 2024) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹60.8 Cr | ₹71.6 Cr | ₹71.0 Cr | -15.0% | -14.4% |
| EBITDA | ₹4.9 Cr | ₹3.0 Cr | ₹2.0 Cr | +63.3% | +145% |
| PAT | ₹0.9 Cr | ₹1.3 Cr | -₹1.0 Cr | -29.1% | Turnaround |
| EPS (₹) | 0.88 | 1.25 | -0.82 | -29.6% | NA |
Commentary:
- Sales are falling, but EBITDA margin magically improved to 8% (maybe they stopped giving discounts?).
- PAT fell 29% YoY, but at least turned positive QoQ.
- Annualised EPS = ₹3.5 → P/E recalculated ~6.4× (vs inflated 382× based on trailing). Stock is technically cheap—but only if you believe profits will sustain.
5. Valuation (Fair Value RANGE only)
Method 1: P/E
- EPS (normalised) = ₹0.88 × 4 = ₹3.5
- Apply logistics peer range: 12–20×
- FV = ₹42 – ₹70
Method 2: EV/EBITDA
- EBITDA (TTM) ~₹6 Cr
- EV = ₹47.5 Cr → EV/EBITDA = ~7.9×
- Sector trades at ~12× → FV = ₹55 – ₹72
Method 3: DCF (Simplified)
- PAT ~₹1 Cr stabilised, 12% growth, 12% discount rate.
- FV = ₹30 – ₹35
Final FV Range:₹35 – ₹70This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Overseas Expansion:Branches in Dubai, Hong Kong, UK. Sounds big, but size = still tiny.
- Emerge Freight Alliance Membership:New trade lanes in Africa, but no revenue visibility yet.
- Financial Cleanup:FY24 had losses, FY25 scraped into positive net. If they keep this
