Jet Freight Logi NSE SME IPO review (Subscribe)

Review By Dilip Davda on Nov 23, 2016

Jet Freight Logistics Ltd (JFLL) is engaged in logistics business having branches located in various cities in India. Company is registered with International air transport association (IATA) agent for Air cargo. JFLL is providing services for Perishable cargo, Time sensitive cargo and also provide Shipment of Hazardous cargo, ODC consignments, pharmaceutical cargo, temperature controlled and general cargo. Its main segment is transport of perishable cargo which includes handling frozen and chilled meat, seafood, vegetables, fruits, cut flowers and pharmaceutical products.

The company has tie ups with various airlines in the world in order to provide tailor made solutions based on customer needs. It offers the best rates along with the best airline options. JFLL has also tied up with various agents across the world who provide services of making the goods reach from international Airport to the respective destinations depending upon the client needs. The company as a freight forwarder take full responsibilities of shipment from the point of receipt to the point of destination .Pricing is based on nature of goods, location, type of service and facility given to the customer. However sector at which the goods are been sent plays a very crucial role in deciding the price of the goods.

To meet its working capital requirements and listing gains, the company is coming out with a maiden IPO of 1452000 equity share of Rs. 10 each at a fixed price of Rs. 28 per share to mobilize Rs. 4.07 crore. Issue has already opened for subscription on 24.11.16 and will close on 28.11.16. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Issue is solely managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. After issuing equity at par in initial period, it issued further equity at a price of Rs. 12.50 per share in 2012. Post IPO, its current paid up equity capital of Rs. 4 crore will stand enhanced to Rs. 5.45 crore. Shares will be listed on NSE SME Emerge platform post allotments.

On performance front, for last three fiscals, it has posted turnover /net profits of Rs. 118.77 cr. / Rs. 0.53 cr. (FY14), Rs. 145.44 cr. / Rs. 0.73 cr. (FY15) and Rs. 206.67 cr. / Rs. 0.96 cr. (FY16). For first quarter of current fiscal, it has earned net profit of Rs. 0.25 crore on a turnover of Rs. 58.66 crore. If we annualize this and attribute on the fully diluted equity post IPO then asking price is at a P/E of 15 plus. As stated in prospectus, the company has no listed peer to compare with.

On merchant banker’s front, this is 21st mandate from its stable and earlier mandates have shown mixed trends on listing days.

Conclusion: Cash surplus investors may park funds for long term.


Conclusion / Investment Strategy

Cash surplus investors may park funds for long term.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Nov 23, 2016

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Jet Freight IPO FAQs

  1. 1. Why Jet Freight IPO?

    The initial public offer (IPO) of Jet Freight Logistics Ltd offers an early investment opportunity in Jet Freight Logistics Ltd. A stock market investor can buy Jet Freight IPO shares by applying in IPO before Jet Freight Logistics Ltd shares get listed at the stock exchanges. An investor could invest in Jet Freight IPO for short term listing gain or a long term.

  2. 2. How is Jet Freight IPO?

    Read the Jet Freight IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Jet Freight IPO what should investors do?

    Jet Freight IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Jet Freight IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Jet Freight IPO good?

    Our recommendation for Jet Freight IPO is to subscribe.

  5. 5. Is Jet Freight IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Jet Freight IPO.

  6. 6. When will Jet Freight IPO allotment status?

    The Jet Freight IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Jet Freight IPO allotment status to check.

  7. 7. When will Jet Freight IPO list?

    The Jet Freight IPO will list on Tuesday, December 6, 2016, at NSE SME.

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