Brace Port Logistics Limited

Brace Port Logistics Limited is a service-based logistics company primarily engaged in the business of providing Ocean cargo logistics services to the clients operating in the various sectors of the economy. They also provide various value-added services like Air Freight, Warehousing facilities, special cargo services such as handling cargo in foreign country and delivery the same in other foreign country and custom clearance services. The company along with the group companies and holding company have an extensive network across the globe. They provide the services at a worldwide level where they cater for clients across the globe and even provide cross-border shipment facilities as well. Company has a strong pan-India and global network to meet the needs of the customers across a wide range of industries including medical supplies and pharma, sports goods, perishables, electronics, consumer durables and automotive etc. As per financial performance, Aesthetik Engineers Limited has posted total income / net profits of Rs 54.20 Cr / Rs 3.22 Cr (FY22), Rs 70.94 Cr / Rs 6.18 Cr (FY23) and Rs 55.24 Cr / Rs 4.89 Cr (FY24). So as per previous financials data, company has shown zig-zag results, and trade receivables is around 31% of FY24 total sales. Company has posted an average EPS of Rs 6.11 and average RoNW of 35.52% for last three fiscals. Issue is priced at a P/BV of 4.79 as per NAV of 16.69 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 28.04, 14.63 and 18.48 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Holani Consultants Private Limited is associated with this SME IPO and handled 10 IPOs (Mainboard & SME) in last 3 years. From last 10 IPOs, one opened below issue price and remaining above or at par on the day of listing. As of now from last 10 IPOs, all are trading above issue price on the day of the listing. ( As on 13.08.24 ) As per financials, Brace Port Logistics Limited has shown zig-zag results, RoNW is 35.52% and P/E is respectively 28.04, 14.63 and 18.48 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but trade receivables is around 31% of FY24 total earnings. Company is engaged in the business of providing Ocean cargo logistics services, which is highly fragmented and competitive business segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Yash Pal Sharma
• 2 Mr. Tarun Sharma
• 3 Mr. Sachin Arora
• 4 Mr. Rishi Trehan
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