Rapid Mutlimodal Logistics Limited

Rapid Mutlimodal Logistics Limited is a Chennai based company engaged in the business of providing one-stop logistical solution to the clients. They majorly cater to the B2B segment of the industry. They provide an end-to-end logistics solution to manufacturers/traders to transport raw materials or finished goods. They provide single as well as multimodal transportation services which involves the coordinated use of multiple modes of transportation (such as road, rail, sea) within a single, integrated supply chain to optimize efficiency and meet the unique requirements of shipments. They encompass a diverse range of industries, including but not limited to Glass, Plywood, Paper, Edible oil, Gypsum boards, Iron & Steel, Scraps, Tiles, Sanitary, Liquor industry. Company is in collaboration with one of the leading players in Logistics Industry. They have a tie up agreement with them on yearly renewal of contract of railway shipments for the clients. For Railway and Coastal transport orders, they deal with their authorized designated person. Company delivers its services with a comprehensive reach across the domestic market, operating at a PAN India level. The clients are in diverse parts of the country having the majority revenue from services coming from Chennai, Balasore, Sri City (Tada), Krishnapatnam, Vizag, Morbi etc.  As per financial performance, Rapid Mutlimodal Logistics Limited has posted total income / net profits of Rs 47.74 Cr / Rs 0.95 Cr (FY22), Rs 72.96 Cr / Rs 2.01 Cr (FY23) and Rs 71.84 Cr / Rs 1.79 Cr (FY24). So as per previous financials data, company has shown almost static result. Company has posted an average EPS of Rs 6.16 and average RoNW of 57.12% for last three fiscals. Issue is priced at a P/BV of 1.36 as per NAV of 61.66 as on post issue. 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 33.55, 15.97 and 17.86 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Gretex Corporate Services Limited is associated with this SME IPO and handled 21 IPOs (SME - 20 and Main Board - 1) in last 3 years. From last 10 IPOs, one opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 IPOs, two are trading below issue price and remaining are trading above issue price or at par. ( As on 20.08.24 ) As per financials, Rapid Mutlimodal Logistics Limited has shown almost static results, RoNW is 38.01% and P/E is respectively 33.55, 15.97 and 17.86 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but issue expenses are very high. Company is a one stop B2B logistic solution provider, which is fragmented and highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Narayan Agarwal
• 2 Mr. Manoj Goel
• 3 Mr. Summit Agarwal
• 4 Ms. Nidhi Agarwal