In the year of 2009, Wise Travel India Limited (“WTI”) has stated its operations as transportation service provider with an objective to redefine urban mobility and metamorphose the fabric of daily commutes. Services mentioned as below are offered by WTI which redefines workplace commuting and corporate vehicle rentals: Car Rental Services, Employee Transportation Services, End-to-End Employee Transport Solutions (MSP), Flexible Fixed/Monthly Rental Plans, Convenient Airport Counters, Fleet Management Services, Mobility Services for MICE, Cutting-Edge Mobility Tech Solutions, Sustainable Mobility, Project Mobility Solutions, Strategic Consulting and Advisory on mobility, Community commute. Also, they have the own brand counters at below mentioned Airports: Delhi - Indra Gandhi International Airport (3 Counters at T1, T2, T3), Bengaluru - Kempegowda International Airport, Guwahati - Lokpriya Gopinath Bordoloi International Airport, Varanasi - Lal Bahadur Shastri International Airport, Gwalior - Rajmata Vijaya Raje Scindia Airport, Bhopal - Raja Bhoj Airport, Amritsar - Sri Guru Ram Das Ji International Airport, Madhurapudi, Andhra Pradesh - Rajahmundry Airport, Visakkhapatnam Airport, Jaipur International Airport, Maduri International Airport, Jabalpur Airport. Further, On September 13, 2023 the Company has established a One-Person Company LLC in the Emirate of Dubai, namely, WTI RENT A CAR L.L.C with the objective of providing car rental services. This year also witnessed the establishment of 12 airport counters, facilitating travelers. Simultaneously, investing in the future of the industry and the company, WTI introduced a Management Trainee Program, sculpting the next generation of Mobility Services leaders and ensuring the brand's ethos is carried forward with the same fervor. As per financial performance, Wise Travel India Limited has posted total income / net profits of Rs 44.07 Cr / Rs 1.78 Cr (FY21), Rs 89.71 Cr / Rs 3.75 Cr (FY22), Rs 249.98 Cr / Rs 10.27 Cr (FY23) and Rs 190.18 Cr / Rs 11.36 Cr (upto H1 FY24). So as per previous financials data, company has shown very good growth. But, trade receivables are around 23% of FY23 revenue and cashflow of last 2 years are negative. Company has posted an average EPS of Rs 3.90 and average RoNW of 18.26% for last three fiscals. Issue is priced at a P/BV of 4.92 as per NAV of 29.89 as on 30.09.23. 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 93.27, 34.09 and 15.40 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Share India Capital Services Private Limited is associated with this SME IPO and handled 9 SME IPOs in last 1 year. From last 9 SME IPOs, all opened above issue price or at par on the day of listing. As of now from last 9 IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 02.02.24 ) As per financials, Wise Travel India Limited has shown good results, RoNW is 25.28% and P/E is respectively 93.27, 34.09 and 15.40 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is in business of transportation service provider, which is highly competitive and fragmented segment. Performance of BRLM is good. So, we give "SUBSCRIBE FOR LISTING GAINS" rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment