Kedia Bets on Logistics: A Risky Play?

Ace investor Vijay Kedia has acquired a 6% stake in Iware Supplychain Services, a pan-India logistics firm incorporated in 2018. Kedia's entities, Kedia Securities Pvt Ltd and his individual portfolio, bought the shares via a preferential issue at Rs 254.09 each, raising approximately Rs 20 crore for the company. This move into an asset-heavy business, which operates eight lakh square feet of warehouse space across seven states, aligns with Kedia's strategy of backing early-stage, unglamorous companies.

However, Iware Supplychain Services is listed on the SME board of NSE, presenting inherent liquidity risks and potential for market manipulation. While the company reported a 71% compounded annual growth rate in EBITDA and 69% in sales over five years, this growth stems from a small base and was heavily skewed towards FY26. Stripping out that single year, sales growth slows significantly.

Furthermore, operating margins thinned to approximately 11% in FY26, and cash flow from operations turned negative, with deeply negative free cash flow due to capital expenditure on warehouses and vehicles. Borrowings doubled to Rs 70 crore in FY26, and debtor days increased to 85. Despite these concerns, the company reported strong returns on capital employed (ROCE) at 28% and return on equity (ROE) at 42% in FY26.

The stock has seen a remarkable surge of over 350% since its listing in May 2025, trading near Rs 365 on June 16, 2026, with a 52-week range from Rs 90 to Rs 395. Its valuation stands at a price-to-earnings (PE) multiple of 26x, close to the industry median of 25x. The company also recommended its first dividend of 10% in May 2026. Investors are advised to watch for the company to convert its booming revenue into actual cash rather than chasing the current stock price.