Imagine a ₹28 crore market cap trucking company asking you for ₹72 per share. That’s what Dhillon Freight Carrier is doing with its ₹10.08 crore IPO. FY25 revenue barely inched up 2% to ₹25.2 crore, but PAT zoomed 58% to ₹1.7 crore – Sherlock’s eyebrow raised: flat sales, profit magic? Debt trimmed from ₹4.8 crore to ₹3.3 crore, leaving Debt/Equity at 0.64. Pre-IPO EPS at ₹6.9 looks okay, but dilution drags it to ₹4.4, giving post-IPO P/E ~16.3x.
So the detective’s question: is this a genuine growth truck or just a painted lorry with “Horn Please” written at the back?
2. Introduction
India runs on trucks. From your online shopping parcel to your neighbour’s shaadi decoration items, everything rides piggyback on some freight carrier. Dhillon Freight Carrier Ltd., founded in Kolkata, now wants to upgrade from highways to Dalal Street with its SME IPO.
But here’s the twist: it’s not a giant logistics behemoth like TCI Express or VRL. It’s a mid-sized regional operator with just 62 vehicles. That’s basically a convoy on Delhi–Kolkata highway, not a nationwide fleet. Still, they boast 22 booking offices, warehouses, pickup points, and clients across apparel, paints, footwear, and engineering goods.
IPO proceeds? Mainly to buy more trucks (₹7.7 crore). Translation: they want investors to fund fleet expansion instead of taking another bank loan. Smart move? Or a way of making shareholders the new financiers? Elementary, dear Watson.
3. Business Model – WTF Do They Even Do?
Clue 1: Parcel / Less-than-Truck Load (LTL). You don’t always fill a truck, so Dhillon consolidates multiple small shipments. Basically Uber Pool, but for cartons.
Clue 2: Contract Logistics. Long-term contracts with companies, so stable revenue. Sherlock approves – recurring clients mean recurring chai money.
Clue 3: Fleet Rental/Leasing. Want a truck without ownership headache? Rent it from Dhillon.
Clue 4: Focus on electric three-wheelers for last-mile delivery. Interesting, because EV fleets are the new ESG candy.
So the business is clear: they move stuff. But scale? 62 trucks. Amazon probably burns through that many in one Bangalore weekend.
4. Financials Overview
Metric
Latest Qtr (Q4FY25)*
YoY Qtr (Q4FY24)
Prev Qtr (Q3FY25)
YoY %
QoQ %
Revenue (₹ Cr)
6.3
6.2
6.2
1.6%
1.6%
EBITDA (₹ Cr)
0.9
0.8
0.9
12.0%
0.0%
PAT (₹ Cr)
0.43
0.27
0.42
59.3%
2.4%
EPS (₹)
1.12
0.71
1.11
57.7%
0.9%
*Quarterly split from annuals.
Detective note: Flat revenue, rising profits = cost cuts, maybe lower fuel costs, maybe less dhaba stops? Need to watch sustainability.
5. Valuation Discussion – Fair Value Range
a) P/E Method
FY25 PAT = ₹1.73 Cr.
Post issue shares = 39.2 lakh.
EPS = ₹4.41.
If SME logistics trades 12x–18x, fair value = ₹53 – ₹79.
b) EV/EBITDA
EBITDA = ₹3.7 Cr.
Net debt = 3.34 Cr.
MCap = 28.2 Cr, EV ≈ 31.5 Cr.
EV/EBITDA = 8.6x. Fair range 6–10x → EV = ₹22–37 Cr → Equity = ₹19–34 Cr → Share Price Range = ₹48 – ₹85.
c) DCF
Assume 12% revenue CAGR.
PAT margin steady ~7%.
Discount 12%.
PV of equity ≈ ₹25–30 Cr → Per share = ₹64 – ₹77.
👉 Fair Value Range = ₹53 – ₹79. ⚠️ Disclaimer: Purely educational, not truck-driving investment advice.
6. What’s Cooking – News, Triggers, Drama
IPO funds to buy more vehicles = direct fleet expansion.
Focus on EV three-wheelers = ESG narrative (though small in
