Premier Roadlines Limited

Premier Roadlines Limited are engaged in providing logistics solutions to businesses, particularly surface transportation of goods ranging from 1 MT to 250 MT. They are goods transport agency providing general transport services, project logistics, and over dimensional/overweight cargo movements on a Pan India basis to the customers wherein they provide point to point services in which the goods are loaded from the premises of the customer and are delivered to the delivery point as specified by them. They mainly serve B2B customers under the Contract Logistics division, who have requirement to transport bulk quantities of their goods from one place to another within India and other neighboring countries like Nepal, Bhutan etc. In F.Y. 2022-23, they have delivered over 26,000 orders across India.  To provide with transportation services, they engage third party operators i.e. small fleet owners and agents who provide them with necessary transportation facilities such as containerized trucks, Trailers, Hydraulic axles etc. The centralized information technology network is capable of connecting the branch offices with the corporate office, which enables real time monitoring of our operations, consignment bookings and delivery status. They carry the logistics business through the widespread transportation network across India which they are operating through our Registered and Corporate Office located in Delhi, along with 28 Branch Offices located in various cities of India like Ahmedabad, Bengaluru, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai, Nashik, Pune etc. Few of the esteemed customers includes KEC International Limited, ThyssenKrupp Industrial Solutions (India) Private Limited, Tata Project Limited, G R Infraprojects  Ltd, Tata Power Solar Systems Limited, Sterlite Power Transmission Limited etc.  On BRLM's front, Hem Securities Limited is associated with this SME IPO and handled 38 SME IPOs in last 3 year. From last 10 SME IPOs, one opened below and remaining opened above issue price on the day of listing. As of now from last 10 SME IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 06.05.24 ) As per financials, Premier Roadlines Limited RoNW is 26.58% and P/E is respectively 39.42, 21.32 and 14.59 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced and sudden rise in net-profit is very surprising. Company is engaged in providing logistics solutions to businesses, particularly surface transportation of goods ranging from 1 MT to 250 MT, which is highly competitive and fragmented 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 Virender Gupta
• 2 Rakhi Gupta
• 3 Samin Gupta