Marinetrans India Limited

As per financial performance, Marinetrans India Limited has posted total income / net profits of Rs 96.13 Cr / Rs 0.79 Cr (FY21), Rs 203.27 Cr / Rs 1.86 (FY22), Rs 150.36 Cr / Rs 1.52 Cr (FY23) and Rs 13.84 Cr / Rs 0.13 Cr (31.05.23 FY24). So as per previous financials data, company has shown zig-zag results, also for current FY they have provided very limited financial data. Company has posted an average EPS of Rs 2.44 and average RoNW of 9.53% for last three fiscals. Issue is priced at a P/BV of 1.22 as per NAV of 21.29 as on Post Issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 17.77, 21.65 and 39.67 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Swaraj Shares and Securities Private Limited is associated with this SME IPO and handled 3 SME IPOs in last 1 years. From last 3 IPOs, one is opened below issue price and remaining opened above issue price or at par on the listing day. As of now from last 3 IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 28.11.23 ) As per financials, Marinetrans India Limited has shown zig-zag results, RoNW is 9.53% and P/E is respectively 17.77, 21.65 and 39.67 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is in business of providing transport management and freight-related services, which is highly competitive and fragmented segment. Performance of BRLM is average. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Tiraj Kumar Babu Kotian
• 2 Mr. Arunkumar Narayan Hegde