Ashapura Logistics Limited is an integrated logistics company in India, primarily operating in (i) Cargo handling and freight forwarding segment; (ii) Transportation (including project logistics and third-party logistics ('3PL')); (iii) Warehousing and Distribution and (iv) other services (including coastal movement). They have pan-India operations through the network of 9 (Nine) branch offices as at the Date of Red Herring Prospectus. Company relies on an 'asset-based' business model wherein the assets necessary for quality services to the customers, such as commercial vehicles, containers and warehouses, are either owned or provided by a network of the business partners on lease basis. Accordingly, they have maintained their owned fleet of vehicle along with network of business partners from whom they hire the required vehicles on need basis. Further, their material subsidiary i.e., Jai Ambe Transmovers Private Limited is also engaged in the business of transportation services, having large fleet of owned commercial vehicles. As on March 31, 2024, they have maintained owned fleet of 250 of commercial trucks (Comprising 181 trucks of the material subsidiary i.e., Jai Ambe and 69 trucks owned by the company). Further, they also own 60 containers of 40 TEUs providing edge in the cargo handling business. The warehouse distribution network comprises of 7 (Seven) warehouses across India situated at prompt locations such as Gujarat, Maharashtra, Karnataka and Tamil Nadu. As on the date of Red Herring Prospectus, the company have 3 (Three) Subsidiary namely 1) Jai Ambe Transmovers Private Limited, 2) Ashapura Warehousing Private Limited and 3) Amanzi International Private Limited. While Jai Ambe Transmovers Private Limited is engaged only in business of transportation, Ashapura Warehousing Private Limited is primarily engaged in the business of warehouse and distribution and Amanzi International Private Limited is currently engaged in the logistics solutions business. They have established longstanding relationships with a diverse set of customers. For the financial year ended 2024, 2023, and 2022, they along with the subsidiaries catered to 560, 536 and 508 customers, respectively, spread across multiple industries, including Auto mobile, West Paper, Textile and Steel industry. Some of the marquee customers includes Name of Ford India Private Limited, Piramal Glass Private Limited, TT Steel Services Private Limited and JK Paper Limited. As per financial performance, Ashapura Logistics Limited has posted total income / net profits of Rs 227.13 Cr / Rs 7.88 Cr (FY22), Rs 222.60 Cr / Rs 9.46 Cr (FY23) and Rs 199.34 Cr / Rs 12.35 Cr (FY24). So as per previous financials data, company has shown declining sales, but net-profit increased significantly. Also trade receivables is around 36% of FY24 total sales. Company has posted an average EPS of Rs 11.10 and average RoNW of 19.40% for last three fiscals. Issue is priced at a P/BV of 2.18 as per NAV of 65.99 as on 31.03.24. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 24.76, 20.61 and 15.80 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Beeline Capital Advisors Private Limited is associated with this SME IPO and handled 43 SME IPOs in last 3 years. From last 10 SME IPOs, all opened above issue price or at par on the day of listing. As of now from last 10 SME IPOs, one is trading below issue price and remaining above issue price. ( As on 26.07.24 ) As per financials, Ashapura Logistics Limited has shown declining sales, RoNW is 18.92% and P/E is respectively 24.76, 20.61 and 15.80 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but company has shown de-grow in sales and trade receivables is around 36% of FY24 total sales. Company is engaged in the logistics business, which is highly fragmented and competitive business segment. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. One may apply for listing gains. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment