1. At a Glance
Snowman Logistics (India’s largest cold chain network) posted Q1 FY26 revenue of ₹163 Cr (+16% YoY) but profit melted to a mere ₹2.5 Cr. Margins are thin (OPM 15%) and P/E is an absurd 141. Stock at ₹54 is priced like ice cream in Antarctica – overpriced for what it delivers.
2. Introduction
Imagine running the biggest freezer network in a tropical country and still sweating for profits. Snowman is literally in the “cool” business but its returns are anything but chill. Revenue is growing, but profits… not so much.
3. Business Model (WTF Do They Even Do?)
Snowman provides temperature-controlled logistics:
- Cold Storage & Warehouses – 44 facilities across 21 cities.
- Transport – refrigerated trucks to move frozen/chilled goods.
- Clients – FMCG, pharmaceuticals, QSR chains.
They keep your ice cream frozen while their EPS melts.
4. Financials Overview
- Q1 FY26 Revenue: ₹163 Cr
- Operating Profit: ₹24 Cr (OPM 15%)
- Net Profit: ₹2.5 Cr (EPS ₹0.15)
- 12M PAT: ₹6 Cr
Verdict: Good growth, but profits remain tiny and tax rates dance like Bollywood numbers.
5. Valuation – What’s This Stock Worth?
- Current P/E: 141x (lol)
- Fair Value (P/E 30x): ₹15–₹20
- EV/EBITDA Range: ₹25–₹30
The market seems to think Snowman is a tech startup, not a logistics company.
6. What-If Scenarios
- Bull Case: Margin expansion + higher utilization → ₹80.
- Bear Case: No turnaround, high P/E collapses → ₹20.
- Base Case: ₹40–₹55, until profitability improves.
7. What’s Cooking (SWOT Analysis)
Strengths: Largest cold chain network, strategic clients.
Weakness: Low ROE, inconsistent profits, high P/E.
Opportunities: Pharma & frozen food boom, expansion of warehouses.
Threats: High energy costs, debt load, competition from regional players.
8. Balance Sheet 💰
| Particulars (Mar’25) | Amount (₹ Cr) |
|---|---|
| Equity Capital | 167 |
| Reserves | 240 |
| Borrowings | 307 |
| Total Liabilities | 771 |
| Total Assets | 771 |
| Commentary: Leverage is high, returns low. Cool assets, hot liabilities. |
9. Cash Flow (FY23–FY25)
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) |
|---|---|---|---|
| FY23 | 86 | -42 | -58 |
| FY24 | 88 | -24 | -59 |
| FY25 | 65 | -52 | -17 |
| Cash flows positive but capex keeps eating into it. |
10. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 1.4% |
| ROCE | 4.3% |
| D/E | 1.2 |
| PAT Margin | 1.6% |
| P/E | 141 |
| Punchline: Financially as attractive as melted ice. |
11. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 418 | 89 | 13 |
| FY24 | 503 | 102 | 13 |
| FY25 | 553 | 89 | 6 |
| Growth? Yes. Profitability? On life support. |
12. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Container Corp | 8,887 | 1,314 | 34 |
| VRL Logistics | 3,161 | 177 | 30 |
| Snowman | 575 | 6 | 141 |
| Snowman’s profits are microscopic compared to peers, yet trades at a tech multiple. |
13. EduInvesting Verdict™
Snowman has the infrastructure to win but profits to lose. At current valuations, investors are paying champagne prices for cold water. Until margins thaw and ROE improves, it’s more “Snowed Man” than Snowman.
Written by EduInvesting Team | 28 July 2025
Tags: Snowman Logistics, Cold Chain, Q1 FY26 Results, EduInvesting Premium
