At a Glance
Destiny Logistics is a West Bengal-based SME that grew from ₹7 Cr to ₹68 Cr in annual revenue over 5 years. It combines cab services, infra contracts, and supply chain. But it’s trading at 60x earnings, has low ROE, and keeps issuing warrants like confetti. Is this microcap moonshot real — or just destiny written by operators?
1. Introduction with Hook 🚨
From cab bookings to civil construction, Destiny Logistics & Infra Ltd does… well, a bit of everything.
It sounds like one of those startups that once pivoted from AI-powered food delivery to “EV-enabled cab logistics platform with government contracts.”
Except it’s listed. And in the last 1 year, the stock is up 224%.
Let’s unpack whether this SME rocket is heading for the moon or is just another firecracker fizzling midair.
2. WTF Do They Even Do? 🧩
Core Activities:
- 🛻 Logistics: Corporate movement, supply chain, people transport
- 🏗️ Infra: Small government construction jobs (PHC, creche tenders)
- 🚕 Cab services for Indian Railways (yes, legit)
It’s an asset-light, contract-heavy business.
Their addressable market is huge. But their execution capabilities and governance? Jury’s out.
3. Financials Overview – Profit, Margins, ROE 💸
| Metric | FY21 | FY23 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 10.06 | 56.72 | 68.06 |
| Net Profit (₹ Cr) | 0.30 | 2.07 | 2.59 |
| OPM (%) | 5.57% | 5.54% | 7.51% |
| ROE (%) | ~9% | 8.5% | 8.7% |
- Solid revenue growth (5Y CAGR: 59%)
- Margins improving slowly, but absolute PAT is tiny
- ROE/ROCE = meh. This is no cash cow.
4. Valuation – Is It Cheap, Meh, or Crack? 🧠
- CMP: ₹104
- EPS: ₹1.68
- P/E: 61.6x
- P/BV: 5.12x
- ROE: 8.67%
🎯 Fair Value Range: ₹30–₹45
Based on 18–25x FY26E EPS of ₹1.5–₹2 (generous)
The market is clearly pricing in “hope + story + dilution + operator action.”
5. What’s Cooking – News, Triggers, Drama 🍿
🔥 Preferential Issues Galore:
- May 2025: 91 lakh warrants @ ₹33 = ₹7.5 Cr
- Sep 2024: Plan to issue 96 lakh warrants = ₹31.68 Cr
- Sep 2024: Authorised capital hiked to ₹25 Cr
- Sep 2024: AGM resolution to allow ₹1,000 Cr borrowings 💀
📦 Railways order worth ₹5.16 Cr (Jan 2024) for cab services
🧱 Alipurduar PHC tender win (May 2023)
Too many resolutions, too little EBITDA?
6. Balance Sheet – How Much Debt, How Many Dreams? 🏗️
| Metric | FY21 | FY23 | FY25 |
|---|---|---|---|
| Net Worth | ₹1 Cr | ₹26 Cr | ₹31 Cr |
| Borrowings | ₹3.75 Cr | ₹1.8 Cr | ₹17.25 Cr |
| Total Assets | ₹6.6 Cr | ₹40.4 Cr | ₹64 Cr |
- Equity base inflated via warrants
- Debt rising post FY24, D/E now ~0.55x
- Infra plans = capex plans = dilution inevitable
7. Cash Flow – Sab Number Game Hai 💵
| FY | CFO (₹ Cr) | FCF Est. | Capex Notes |
|---|---|---|---|
| FY23 | ₹0.47 Cr | Negligible | Minor |
| FY24 | -₹9.07 Cr | Negative | Infra build |
| FY25 | ₹2.06 Cr | Low | Delayed WC recovery |
- Erratic cash flow.
- Almost no retained cash after working capital + infra commitments
8. Ratios – Sexy or Stressy? 💅
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 13.8% | 11.1% | 11.2% |
| OPM (%) | 5.5% | 6.8% | 7.5% |
| Debtor Days | 154.9 | 176.4 | 119.1 |
| CCC (Days) | 98.6 | 122.7 | 115.1 |
✅ Debtor days improved
⚠️ CCC still high = cash stuck in receivables
⚠️ ROCE flat despite revenue growth
9. P&L Breakdown – Show Me the Money 💰
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY22 | ₹34.7 | ₹1.8 | ₹1.3 |
| FY23 | ₹56.7 | ₹3.1 | ₹2.1 |
| FY25 | ₹68.1 | ₹5.1 | ₹2.6 |
Slow, steady revenue growth
Low PAT scale
No dividend in 7 years = retention mode or penny pinching?
10. Peer Comparison – Who Else in the Game? 🚚
| Company | P/E | ROE (%) | OPM (%) | Market Cap (₹ Cr) |
|---|---|---|---|---|
| VRL Logistics | 29x | 18.0 | 18.1 | 5,284 |
| TCI | 22x | 19.8 | 10.3 | 9,146 |
| Delhivery | 188x | 1.8 | 4.2 | 31,429 |
| Destiny Log. | 61.6x | 8.7 | 7.5 | 160 |
TLDR: Destiny is a tiny fish in a very deep logistics ocean
P/E doesn’t justify its size or scalability
11. Miscellaneous – Shareholding, Promoters, Red Flags 🚩
| Category | Oct ’21 | Mar ’22 | Mar ’25 |
|---|---|---|---|
| Promoters | 99.72% | 64.8% | 64.76% |
| Public | 0.28% | 35.2% | 35.24% |
| Shareholders | 7 | 322 | 337 |
⚠️ Only 337 shareholders?!
⚠️ Extremely low float
⚠️ Repeated warrant issuances — classic SME operator bait?
12. EduInvesting Verdict™ ⚖️
✅ Revenue grew 10x in 5 years
✅ Railways contracts = real
✅ OPM improving, net worth growing
❌ 60x P/E for ₹2 Cr profit is insanity
❌ Warrants, borrowings, shady resolutions = 🚩
❌ ROE/ROCE too weak for such valuation
📉 Fair Value Range: ₹30–₹45
📍 CMP: ₹104 = 3X fundamentals, pure narrative play
Destiny isn’t a logistics play. It’s a liquidity play.
✍️ Written by Prashant | 📅 July 9, 2025
Tags: Destiny Logistics, SME Stocks, Cab Services, Infra Stocks, Warrant Dilution, Operator Activity, Railways Contracts, EduInvesting SME Watch
