Transvoy Logistics India Limited

Transvoy Logistics (India) Limited is engaged in the business of integrated logistics solutions. Their key expertise include NVOCC, Freight Forwarding, Custom Clearance, Transportation handlings locally as well as globally and Advisory on MEIS License Trading. As on the date of this Prospectus, they primerily provide services to the clients countries namely India, China, Middle East, Sri Lanka, Singapore and Malaysia. Company's Core business can be divided in following categories:a) Freight Forwardingb) Customs Clearancec) Allied Logistics and Transportation Services Company has wholly owned subsidiary Aashirvad Shipping & Allied Private Limited (ASAPL). ASAPL is engaged in the business of providing services of custom clearing. They have recently formed a company in Singapore namely Transvoy Logistics PTE. Ltd. (Transvoy – Singapore) where their company holds 55% stake, making it their subsidiary. It is engaged in the business of providing services of non-vessel owning common carrier (NVOCC). As on date of RHP, The Company has employed 4 employees. As per financial performance, Transvoy Logistics has posted total income/net profits of Rs 0.43 Cr / Rs 0.01Cr (FY20), Rs 0.62 Cr / Rs 0.01 Cr (FY21), Rs 5.03 Cr / Rs 0.57 Cr (FY22) and Rs 10.48 Cr / Rs 0.34 Cr (upto Nov 25 FY23). So company has shown good results in last one and half years. Company has posted an average EPS of Rs 5.27 and average RoNW of 449.12% for last three fiscals. Issue is priced at a P/B of 2.68 as per NAV of Rs 26.51 post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 33 and as per annualised FY23 earnings P/E is 36. As per RHP, comparison between listed peers are shown in above table. On BRLM's front, Beeline Capital Advisors Private Limited associated with this SME IPO and handled 6 SME IPOs in last 3 years. From last 6 IPO all opened above issue price or at par. As of now from last 6 IPOs, one is trading below and remaining are trading above issue price or at par. ( As on 20.01.23 ) As per financials Transvoy Logistics, has shown good results, RoNW is 107.1% and P/E is respectively 33 and 36 as per FY22 and annualised FY23 earnings, which looks aggressively priced. Company has shown exceptional growth just before IPO and higher IPO expenses which generates doubts. Also this field is very competitive and we may find better listed peers. Performance of BRLM is good. So we are giving AVOID rating to this IPO.

• 1 Mr. Ravindrakumar Kumarchandra Joshi
• 2 Mr. Naitik Ravindrakumar Joshi
• 3 Mrs. Dipti Ravindrabhai Joshi