Sahara Maritime Limited is registered with Director General of Shipping, Ministry of Shipping, Government of India to act as Multimodal Transport Operator, and is an ISO 9001:2015 certified Freight Forwarder. The Company specializes in sea freight forwarding. They cater the services mainly in the domestic market specifically in the state of Maharashtra. They offer the customers a comprehensive range of freight-related services, along with ancillary transport management. Additionally, they have established informal partnerships with various intermediaries to provide ancillary services such as Transportation, Multimodal Transportation, Project cargo handling, Third Party Logistics, Packaging, loading/unloading, and unpacking of items. These additional services enable to provide end-to-end solutions and other value-added services that cater to the customers’ diverse needs. They understand that each customer has unique shipment requirements, and they prioritize building personal relationships with them to better understand their individual needs. To meet these needs, the Company has proactively outsourced vendors and established partnerships, allowing to offer a wide range of services at competitive prices. This asset-light business model grants to the flexibility to develop tailored logistic solutions across diverse industries while ensuring scalability of services. The primary objective is to ensure the safe transportation and delivery of goods from start to finish. They achieve this by leveraging the expertise to identify and recommend the optimal solution for each client’s specific business environment. The dedicated team of skilled shipping and customs specialists works diligently to provide clients with customized solutions at affordable rates. Strengthening customer relationships and consistently delivering quality products, services, and solutions are at the core of the mission. As per financial performance, Sahara Maritime Limited has posted total income / net profits of Rs 10.22 Cr / Rs 0.65 Cr (FY21), Rs 21.05 Cr / Rs 0.53 Cr (FY22), Rs 26.11 Cr / Rs 1.21 Cr (FY23) and Rs 5.32 Cr / Rs 0.01 Cr (upto Q2 FY24). So as per previous financials data, company has shown good growth, but H1 FY24 data is very poor. Company has posted an average EPS of Rs 4.12 and average RoNW of 19.80% for last three fiscals. Issue is priced at a P/BV of 2.21 as per NAV of 36.73 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 47.51, 20.60 and 1196 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 5 SME IPOs in last 3 years. From last 4 IPOs, one opened below issue price and remaining above issue price or at par on the day of listing. As of now from last 4 IPOs, one IPO is trading below issue price and remaining are trading above issue price. ( As on 15.12.23 ) As per financials, Sahara Maritime Limited has shown good growth, RoNW is 22.76% and P/E is respectively 47.51, 20.60 and 1196 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. But poor H1 FY24 results and higher issue expenses raises doubts. Company is in business of Multimodal Transport Operator and Freight Forwarder, which is highly competitive and fragmented segment. Performance of BRLM is good. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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