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Vijay Kedia usually steers clear of newly listed companies.
Yet, his two investment funds are aggressively buying into a tiny Gujarat warehousing business that just tripled its annual revenue.
Is this surging stock a buying opportunity to pursue immediately, or a unique case study to analyze from the sidelines?
This investment is highly intriguing, but far from straightforward.
While the company’s rapid expansion is undeniable, its growth brings critical questions that any prudent investor must answer before diving in.
Let’s take a closer look under the hood.
Ace investor and market master Vijay Kedia has built his name on a simple habit.
He buys small companies early, backs the people running them, and then sits still for years while the story plays out.
The flashy trade is not his game.
So, when his name turns up next to a stock, retail investors tend to lean in and ask one question: what did he see?
Kedia’s latest move shines a spotlight on an unconventional market contender.
A year-old logistics company from Ahmedabad has caught the veteran investor’s eye, prompting him to pick up shares through his personal portfolio as well as his firm, Kedia Securities Pvt Ltd.
This move is highly intriguing, but it is not an open-and-shut case.
While the firm’s rapid expansion is undeniable, its trajectory raises a few key questions that any prudent investor should answer before getting carried away.
Let’s take a closer look under the hood.
Breaking Down the Heavy Infrastructure Footprint of Iware Supplychain
Established in 2018, Iware Supplychain Services is a nationwide logistics player that essentially manages the storage and transport of corporate goods across India.
The firm takes over warehouse operations for its corporate clients, oversees third-party logistics, manages complex rail rake handling, and provides a full suite of transport and distribution solutions.
With a modest market cap of ₹391 crore, the company punches above its weight by managing roughly 8 lakh square feet of warehouse space.
Its logistics network is spread across 11 key centers in seven states, giving it a physical presence from Gujarat and Rajasthan all the way to Uttar Pradesh and West Bengal.
This is a meat-and-potatoes, asset-heavy operation that runs on physical warehouses, trucks, and steady working capital.
It caters to foundational industries like fast-moving consumer goods, auto components, and sanitaryware.
There is zero glamour here—which is precisely why it fits the classic, no-frills profile Vijay Kedia has often gravitated toward throughout his investing career.
Vijay Kedia locked in a combined 6% stake in the firm, neatly dividing his bet into two equal slices.
He placed 3% under his own name and another 3% under his investment arm, Kedia Securities Pvt Ltd.
SME Investing: The Reality of Liquidity Risks
Before examining the details, it is crucial to note that this stock trades on the NSE SME platform.
Investing in small and medium enterprises always carries a built-in disclaimer: proceed with absolute caution.
The mandatory requirement to buy and sell in massive, fixed lots acts as a severe liquidity trap, leaving investors completely stuck when prices start to plummet.
To make matters worse, these companies operate on a tiny equity base, making them easy targets for price manipulators who orchestrate ‘pump and dump’ schemes to corner retail money.
On top of that, relaxed accounting and reporting rules frequently mask deep financial problems—meaning everyday investors rarely spot the warning signs until it is already too late to escape.
With that crucial warning in mind, let’s explore how Vijay Kedia engineered his entry into the company.
Vijay Kedia didn’t pick up these shares through regular stock exchange trading.
Instead, the firm opted for a preferential issue.
This means the company minted a brand-new batch of shares and sold them directly to a select group of investors, completely bypassing the open market.
To fuel its plans, Iware issued up to 7,90,800 brand-new shares at a final price of ₹254.09 each, pulling in close to ₹20 crore in fresh capital.
Standing right at the front of the line to buy these shares were Vijay Kedia’s two distinct investment vehicles.
The Reality Behind the Growth Numbers of Iware Supplychain Services Share : Spectacular CAGR Meets the Low-Base Effect
| Financial Year | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 | 5Y CAGR |
| Sales (Rs cr) | 19 | 24 | 44 | 59 | 86 | 258 | 69% |
| EBITDA (Rs cr) | 2 | 3 | 6 | 11 | 17 | 29 | 71% |
| Net Profit (Rs cr) | 1 | 1 | 0 | 4 | 8 | 15 | 72% |
The company’s long-term performance numbers tell an incredible story.
Data from Screener shows that core operating profit (EBITDA) grew at a massive 71% compounded rate over the past five years.
In nearly perfect lockstep, sales have compounded at around 69% and net profits at about 72%.
Those are highly compelling growth figures for any market observer.
Now for the reality check—and it involves two massive asterisks.
For starters, the company began its journey on a tiny scale.
Scaling up sales from ₹19 crore to ₹258 crore is bound to generate eye-popping percentages simply because the starting point was so small.
More importantly, nearly all of that explosive growth was crammed into just one year.
Sales sat at ₹86 crore in FY25 before skyrocketing to ₹258 crore in FY26—literally tripling in a single twelve-month window.
If you strip away that one blockbusting year, the revenue growth from FY21 to FY25 normalizes to a much more modest 46%.
When you consider that the company also flirted with a near-breakeven patch back in FY23, it becomes clear that the flawless-looking CAGR hides a very bumpy financial ride.
The Paper Profit Illusion: Why Soaring Net Income Isn’t Translating Into Cash
This is exactly where a prudent investor needs to pump the brakes.
As the company aggressively chased scale, its profit margins took a serious hit.
The operating margin tumbled from about 20% in FY25 down to roughly 11% in FY26.
Put simply, the company is pulling in more revenue but making much less profit on each rupee of sales.
This is a classic symptom in the logistics industry, where firms often pile on low-margin transport and bulk handling assignments just to inflate their top-line growth numbers quickly.
The real red flag, however, is the cash situation.
Look past the glowing paper profits and you will see that operating cash flow actually turned negative in FY26.
Free cash flow was even worse, dragged down by heavy spending on new warehouses and transport vehicles.
To keep the lights on and fund this growth, borrowings more than doubled, jumping from ₹30 crore in FY25 to ₹70 crore in FY26.
At the same time, debtor days crept up from 60 to 85 days, meaning it is taking the company much longer to collect cash from its clients.
For a fast-growing logistics company in full expansion mode, this isn’t a fatal blow.
But it does mean that paper profits aren’t translating into actual cash in the bank, and that is a trend you cannot afford to ignore.
The Price of Growth: Making Sense of the 26x P/E Multiple
For all the warning signs, the company is remarkably efficient with the money it spends.
Data from Screener shows its Return on Capital Employed (ROCE) hit about 28% in FY26, while Return on Equity (ROE) soared to close to 42%.
In simple terms, for every ₹100 of capital the business put to work, it pulled in about ₹28 of operating profit before taxes.
That is a highly impressive scorecard for a heavy-lifting logistics firm, and it explains why a seasoned value investor would take a serious interest in the stock.
Suggested Reading
Vijay Kedia Portfolio, Strategy & Net Worth (2026) – SMILE Investing Explained