Committed Cargo Care Limited

As per financial performance, Committed Cargo Care Limited has posted total income/net profits of Rs 113.85 Cr / Rs 2.32 Cr (FY21), Rs 146.12 Cr / Rs 3.08 Cr (FY22) and Rs 122.42 Cr / Rs 5.33 Cr (FY23), So company has shown average result, but sudden rise in net-profit is very surprising. Company has posted an average EPS of Rs 5.39/- and average RoNW of 15.51% for last three fiscals. Issue is priced at a P/BV of 1.55 as per NAV of Rs 49.77/- as on post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 26.96 and as per FY23 earnings P/E is 15.61. As per RHP, comparison between peers is shown in above table. On BRLM's front, Fedex Securities Private Limited is associated with this SME IPO and handled 18 SME IPOs in last 4 years. From last 10 IPO, three opened below issue price and remaining opened at par or above issue price on the listing day. As of now from last 10 IPO, 4 are trading below issue price and remaining above issue price. ( As on 03.10.23 ) As per financials, Committed Cargo Care Limited has shown average results, RoNW is 18.48% and P/E is respectively 26.96 and 15.61 as per FY22 and FY23 earnings. So, issue looks fully priced. But, sudden rise in net-profit and higher value of issue expenses are very surprising. Company is in business of providing integrated logistics services, which is highly fragmented and competitive segment. Performance of BRLM is average. So we are giving NEUTRAL rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Rajeev Sharma
• 2  Nitin Bharal
• 3  Narendra Singh Bisht
• 4  Yash Pal Arora
• 5  Sonia Bharal