Kotak Institutional Equities initiated coverage on Shadowfax Technologies with a “ADD” rating and a price target of ₹310, which implies an upside potential of 10% from current levels. The stock has already risen 127% from its issue price.
Shadowfax is the second-largest player in India’s largely duopolistic third-party e-commerce logistics market. It competes with Gurugram-based Delhivery.
Kotak Institutional Equities expects Shadowfax to outgrow the broader third-party e-commerce logistics industry by 1.4 times over FY2026-30, supported by the courier company’s strong exposure to homegrown Indian e-commerce company Meesho, and its ability to gain share across relatively underpenetrated segments.
The brokerage has valued Shadowfax’s Express business at 27 times its two-year forward Enterprise Value to EBITDA and at a 10% discount to Delhivery’s fair value multiple. The brokerage attributed this to the margin pressure on Shadowfax due to its higher dependence on Meesho.
However, Kotak Institutional Equities said that the cost-deflation lever and the superior asset turnover ratios position Shadowfax well to mitigate this key risk.
Kotak has become the sixth brokerage to initiate coverage on Shadowfax Technologies. Their price target is also the highest on the street among the six analysts. The five other analysts who track the stock also have a “buy” rating on it with price targets ranging from ₹280 to ₹300 per share.
Shares of Shadowfax Technologies are trading 1.7% higher on Wednesday at ₹287.85. The stock is up 11% in the last one month.