Timescan Logistics (India) Limited

Timescan Logistics (India) Limited is a Multimodal Transport Operator that offers logistics services involving land, air, and sea transportation and third-party logistics provider. The business provides a complete range of transport and freight-related services like Freight Forwarding (Sea and Air), Customs Clearance, Warehousing, Transportation, Multimodal transportation, Project Cargo, Vessel Charter, packaging, loading/unloading, etc. It is a registered custom house broker with Custom offices - Chennai, Vijaywada, and Mundra and also a member of the World Cargo Alliance for its global reach. The business also has a 16,354 Sq. ft warehouse on long-term lease under Free Trade Warehousing Zone of JMD Chennai SEZ. As per financial performance, Timescan Logistics (India) Limited has posted total income/net profits of Rs 63.93 Cr / Rs 0.84 Cr (FY19), Rs 65.09 Cr / Rs 0.79 Cr (FY20), Rs 99.76 Cr / Rs 1.24 Cr (FY21) and Rs 27.24 Cr / Rs 0.40 Cr (Q1 FY22). So company has shown good results over last Couple of years. Company has posted an average EPS of Rs 4.03 and average RoNW of 21.25% for last three fiscals. Trade receivables for company as per FY21 results is around 21.49% which is very high. Issue is priced at a P/B of 1.65 as per NAV of Rs 30.88 post issue. As Per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 14.27 and as per annualised FY22 earnings P/E is 10.91. As per RHP, Comparison between listed peers are shown in above table, but they can't be compared on apple to apple basis.  On BRLM's front, Finshore Management Services Limited is associated with this IPO, and have handled around 18 IPO in last three fiscals. From last 10 IPOs, two are opened below issue price and remaining are opened above issue on the day of listing. As of now, seven are trading below issue price and remaining are trading above issue price. ( As on 29.12.21) As per financials, Timescan Logistics has shown good financials, RoNW is 22.43% and P/E is respectively 14 and 11 as per FY21 and annualised FY22 earnings, which looks reasonably priced. Logistics sector is highly competitive and also has good growth opportunities. Performance of BRLM is bad. So, we are giving NEUTRAL rating to this IPO.

• 1 Mr.Moulana Taufeek Islam
• 2 Mrs. Ayisha Beevi