Here's Why We Think Destiny Logistics & Infra (NSE:DESTINY) Might Deserve Your Attention Today

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Destiny Logistics & Infra (NSE:DESTINY). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Destiny Logistics & Infra with the means to add long-term value to shareholders.

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Destiny Logistics & Infra's Earnings Per Share Are Growing

If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. That means EPS growth is considered a real positive by most successful long-term investors. Impressively, Destiny Logistics & Infra has grown EPS by 27% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be beaming.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. It's noted that Destiny Logistics & Infra's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. Destiny Logistics & Infra maintained stable EBIT margins over the last year, all while growing revenue 6.7% to ₹736m. That's encouraging news for the company!

The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.

See our latest analysis for Destiny Logistics & Infra

Destiny Logistics & Infra isn't a huge company, given its market capitalisation of ₹2.0b. That makes it extra important to check on its balance sheet strength.

Are Destiny Logistics & Infra Insiders Aligned With All Shareholders?

Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So we're pleased to report that Destiny Logistics & Infra insiders own a meaningful share of the business. In fact, they own 65% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. Intuition will tell you this is a good sign because it suggests they will be incentivised to build value for shareholders over the long term. Valued at only ₹2.0b Destiny Logistics & Infra is really small for a listed company. That means insiders only have ₹1.3b worth of shares, despite the large proportional holding. That might not be a huge sum but it should be enough to keep insiders motivated!

While it's always good to see some strong conviction in the company from insiders through heavy investment, it's also important for shareholders to ask if management compensation policies are reasonable. Our quick analysis into CEO remuneration would seem to indicate they are. For companies with market capitalisations under ₹18b, like Destiny Logistics & Infra, the median CEO pay is around ₹4.1m.

Destiny Logistics & Infra's CEO only received compensation totalling ₹2.5m in the year to March 2025. This total may indicate that the CEO is sacrificing take home pay for performance-based benefits, ensuring that their motivations are synonymous with strong company results. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense.

Does Destiny Logistics & Infra Deserve A Spot On Your Watchlist?

If you believe that share price follows earnings per share you should definitely be delving further into Destiny Logistics & Infra's strong EPS growth. If you still have your doubts, remember too that company insiders have a considerable investment aligning themselves with the shareholders and CEO pay is quite modest compared to similarly sized companiess. Everyone has their own preferences when it comes to investing but it definitely makes Destiny Logistics & Infra look rather interesting indeed. What about risks? Every company has them, and we've spotted 2 warning signs for Destiny Logistics & Infra you should know about.

Although Destiny Logistics & Infra certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Indian companies that not only boast of strong growth but have strong insider backing.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.