Shadowfax Tech IPO 47% Subscribed on Day 1

“At the upper end of the price band of Rs. 124 per share, the company is trading at a P/E of 155.0x based on its FY26 annualised earnings. Supported by strong industry tailwinds and clear profitability drivers, STL appears well-positioned to benefit from the evolving digital commerce landscape. We thus recommend a 'SUBSCRIBE' rating to the issue from a medium-to long-term perspective.”

“It is well-positioned to benefit from the rapid expansion of India’s e-commerce and last-mile logistics market, with recent revenue and order volumes growing strongly. However, while revenue momentum and profitability have both been improving (including turning a small profit in FY25 and a notable net profit increase in the first half of FY26), overall margins remain modest, and earnings visibility is still developing. At around a 2.8× Price-to-Sales multiple, the IPO valuation is relatively high compared with peers such as Delhivery, making it a pricier play in the logistics space. As a small player, it has a lot of growth space in the industry, hence long-term can be promising.”