SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Dhillon Freight Carrier Ltd

BSE: 544556 NSE: ISIN: INE0SPJ01011
  |   Sector:  Transportation & Logistics   |   Industry:  Logistics

Snapshot

Q.1 Which industry/sub-sector does Dhillon Freight Carrier Ltd belong to?
Dhillon Freight Carrier Ltd belongs to the Transportation & Logistics sector, operating specifically within the Logistics segment.
Q.2 Is Dhillon Freight Carrier Ltd a good quality company?
Dhillon Freight Carrier Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Dhillon Freight Carrier Ltd undervalued or overvalued?
Dhillon Freight Carrier Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 8.16 8.38
Price to Book 0.92 0.98
Price to Sales 0.57 0.59
EV to EBITDA 3.39 3.48
Q.4 Is Dhillon Freight Carrier Ltd a good buy now?
Dhillon Freight Carrier Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd revenue growth is 3% for FY-2025, which is above its 3-year CAGR of -7.66%, indicating faster growth.

Q.2 Gross Profit margin of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.3% for FY-2025, which is in line with its 3-year median of 14.8%, indicating stable margins.

Q.3 Operating Profit Margin of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.9% for FY-2025, which is above its 3-year median of 13.93% indicating increasing margins.

Q.4 Net Profit Margin of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd Net Profit Margin is 6.99% for FY-2025, is above its 3-year median of 4.55%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 15.3 14.8
Operating Profit Margin (%) 14.9 13.93
Net Profit Margin (%) 6.99 4.55

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd Return on Asset is 18.68%, which is above its 3-year historical median of 13.94%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd Return on capital employed is 32.44% for FY-2025, which is above its 3-year historical median of 27.93%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd Return on equity is 39.64% for FY-2025, which is in line with its 3-year historical median of 39.64%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd Cash conversion cycle is 13 days, above its 3-year historical median of 8 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 2.67 3.06
ROE (%) 39.64 39.64
ROCE (%) 32.44 27.93
Cash Conversion Cycle 13 days 8 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd Debt-to-Equity ratio is 0.64, which is above the industry average of 0.44, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Dhillon Freight Carrier Ltd?
Dhillon Freight Carrier Ltd Debt to cash flow from operations is 0.98, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Dhillon Freight Carrier Ltd?

Q.1 Promoter shareholding and pledge status of Dhillon Freight Carrier Ltd?
Promoters hold 64.98% of the Dhillon Freight Carrier Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dhillon Freight Carrier Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dhillon Freight Carrier Ltd vs industry peers?
Dhillon Freight Carrier Ltd revenue CAGR is -7.66%, compared to the industry median CAGR of 8.47%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 3 8.5
Gross Profit Growth (%) 7.1 17.1
Operating Profit Growth (%) 10.5 23.2
Net Profit Growth (%) 58.7 26.1
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 2.67 1.87
ROE (%) 39.64 13.17
ROCE (%) 32.44 15.97
Cash Conversion Cycle (days) 13.1 44

Valuation & price assessment

Q.1 Stock return of Dhillon Freight Carrier Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Dhillon Freight Carrier Ltd vs historical?
The current P/E ratio of 8.16 is in line with than its historical median of 8.38, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 8.16 8.38 21.40
Price to Book 0.92 0.98 2.02
Price to Sales 0.57 0.59 0.94
EV to EBITDA 3.39 3.48 10.08

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×