Started in 2008, Accuracy Shipping Limited is a third party logistics solutions provider, based at Anjar - Gujarat. Company offers customised and end-to-end logistics solutions and services including transportation and distribution, freight forwarding, clearing and forwarding service, custom house clearance, warehousing and value added services to its clients. Company is also engaged in handling of project cargo, to meet specific customer requirements for the transport of high value specialised equipments from one location to another using multiple modes of transport. As a multimodal transport operator, company offers end-to-end freight services for export and import cargo utilising multiple modes of transport such as sea, road, rail and air. Company operates its business through a PAN India network consisting of a registered office at Anjar, 5 branch offices and over 1,300 clients as at January 31, 2018. In addition to using hired fleets, company also has a fleet of more than 150 vehicles to meet its inland transportation requirements. Company also has a network of various business partners providing them vehicles, warehouses and other assets and services for its business. At present they are offering services through their business partners in over more than 35 countries mainly from South Africa, Egypt, Turkey, Italy, Colombo, etc. At present, they are serving diverse type of industries consisting of marbles & granite industry, paper industry, fabric industry, agricultural products, etc. As on December 31, 2017, ASL has 169 employees on payroll. In addition they have also hired more than 150 drivers to carry out their operations. As per financial performance, company has posted total income/net profits of Rs. 30.65 cr. / Rs. 0.27 cr. (FY13), Rs. 97.39 cr. / Rs. 0.62 cr. (FY14), Rs. 161.66 cr. / Rs. 0.32 cr. (FY15), Rs. 170.79 cr. / Rs. 1.07 cr. (FY16) and Rs. 201.29 cr. / Rs. 1.96 cr. (FY17). For the period upto Q3 of FY18, it has earned net profit of Rs. 6.82 cr. on a turnover of Rs. 266.53 cr. So there is very much increase in net profit for FY18 and this generates doubts. Except FY15 when there is decline in bottom-line, company has shown increase in both top-line and bottom-line. For last three fiscals, it has posted an average EPS of Rs 5.53 and an average RoNW of 16.27%. Issue is price at P/BV of 4 based on its NAV of 21.03 as on 31.12.17. Also debt to equity ratio of company as on 31.12.17 is 2.04. If we annualise latest net profit of FY18 and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 13 plus, which looks good at first sight. But if company may able to repeat same performance in future also, on consistent basis, is a big question. As per RHP, it has shown Tiger Logistics, Allcargo Logistics, Sical Logistics and Total Transport Systems as its listed peers which are trading at a P/E of around 18, 16, 29 and 10 respectively (as on 06.06.18). So issue looks fully priced. On BRLM's front, for Pantomath Capital Advisors Private Limited, this is the 78th IPO and from last 10 IPOs, 2 listed at par and remaining with 2% to 20% premium on the day of listing. As of now, from recent 10 IPOs, 6 are trading below issue price and remaining above issue price. ( As on 05.06.18 ) As per financials, company's performance is good and shown consistent growth in top-line and bottom-line except FY15, RoNw is 16.27% for last three fiscals and issue is fully priced. Performance of FY18, has shown very much increase in bottom-line and its sustainability is major concern. Performance of BRLM in recent past is poor and most IPOs which listed above issue price are trading below issue price. So we give NEUTRAL rating to this SME IPO as per current market situation.
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