📈 At a Glance
Sical Logistics Ltd, once a flagship of Indian integrated logistics, is now a textbook case of how to destroy shareholder wealth. With a negative book value, deeply pledged promoter shares, and sales in steady decline, the company is clinging to life via Coffee Day CPR and prayers. Market cap stands at ₹729 Cr, but fundamentals are practically dead on arrival.
✈️ 1. Introduction with Hook
Remember when logistics used to mean “growth stock”? Sical was that guy in the 2000s. Today, it’s more like a logistics zombie run by the ghost of Coffee Day. Once handling over 25 million tons of cargo, now it’s barely holding up under its own debt.
And oh, promoters just pledged 51% of the company to raise ₹250 Cr. Because nothing screams confidence like handing over half your stake.
🚚 2. WTF Do They Even Do?
Sical Logistics is an integrated logistics player (read: jack of all, master of none now) involved in:
- Port logistics, mining logistics, road/rail transport
- Container Freight Stations (CFS), warehousing, and shipping
- Offshore dredging (yes, they even own a cutter suction dredger)
Cargo portfolio includes coal, iron ore, containers, limestone, granite, etc.
💲 3. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹222 Cr |
| Net Profit | ₹-26 Cr |
| Operating Margin | 10.5% |
| ROE | -294% |
| Book Value | ₹ -0.73 |
Sales have dropped 80%+ from FY18 levels. The company now exists solely to service loans, it seems.
📉 4. Valuation – Cheap, Meh, or Crack?
- Current Price: ₹113
- P/E: N/A (company is loss-making)
- Book Value: Negative
Fair Value? More like Fear Value. Even the generous EduInvesting model gives it FV Range: ₹35-45, max.
🌪️ 5. What’s Cooking – News, Triggers, Drama
- Promoter Pledge Alert (June 2025): 51% pledged for ₹250 Cr with 1.41x cover.
- Public Shareholding Adjustment: To meet 10% MPS, promoter offloaded 0.12%.
- Delisting Buzz? Market whisperers say this is the prelude to Coffee Day group monetizing via asset sale.
🌋 6. Balance Sheet Check
| Item | FY25 |
|---|---|
| Borrowings | ₹608 Cr |
| Reserves | ₹-70 Cr |
| Equity | ₹65 Cr |
Leverage is real. Net worth is negative. The company is technically insolvent.
💰 7. Cash Flow – Sab Number Game Hai
- FY25 CFO: ₹20 Cr (yay)
- Capex: ₹64 Cr (why tho?)
- FCF: ₹-44 Cr (ouch)
Consistent negative FCF in 9 of last 12 years.
📊 8. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 0.41% |
| ROE | -294% |
| Debtor Days | 119 |
| Interest Coverage | Below 1x |
Even in a booming logistics cycle, they underperform. This is pure stress.
📈 9. P&L Breakdown – Show Me the Money
- Sales halved since FY20
- Losses continue every year
- Other Income often props up bottom line (e.g. ₹28.8 Cr in FY24)
- No dividend since forever
👨💼 10. Peer Comparison
| Company | ROE | OPM | Mcap (Cr) | Comments |
|---|---|---|---|---|
| TCI | 19.8% | 10.3% | ₹8800 | Solid business |
| Blue Dart | 17.2% | 15.3% | ₹16200 | Premium brand |
| Delhivery | 1.8% | 4.2% | ₹29000 | Expensive tech logi bet |
| Sical | -294% | 10.5% | ₹729 | Zombie stock |
🛡️ 11. Miscellaneous
- Promoter: Coffee Day group
- Shareholding: Promoter holds 90% (after pledging 51%)
- Auditor notes: Impairment risks, going concern doubts in past
- Rating agencies: Repeated downgrades from ICRA & Brickwork
🧵 12. EduInvesting Verdict️️
This is not a turnaround story. This is a corporate ICU case.
Sical looks like:
- A financial engineering project
- A collateral vehicle for Coffee Day
- A logistics player only on paper
EduInvesting Score: ❌ “-10/100”
Verdict: Avoid unless you’re collecting horror stories for grandkids.
✍️ Written by Prashant | 🗓️ July 3, 2025
