Shreeji Translogistics BSE SME IPO review (Apply)

Review By Dilip Davda on Sep 27, 2017

Shreeji Translogistics Ltd. (STL) is a Pan-India surface logistics and parcel delivery service provider. It has grown into an integrated national logistical solution provider, catering a wide range of logistical requirements from Import-Export Container movement to local parcel delivery. The various types of services provided by it include: Full Truck Load Transport Services, Parcel and Part Truck Load Services/ less than Truck Load (LTL), Import- Export Services and Bonded Trucking Services. Full Truck Load Transport service is its core business and in this space, it has been a trusted name for Time-Bound Deliveries. Bonded Trucking Service, which was a new concept introduced in India in the year 2000, was initially started by STL in the year 2002, wherein it handle import- export cargo of various national and international airlines from many air cargo complexes. STL is certified by ISO 9001:2015 for provision of Customs Bonded Trucking Services and is Indian Bank Association (IBA) approved transporter.

STL owns and operates a strong fleet of commercial vehicles consisting of 229 owned trucks (as on July 31, 2017) and more than 500 outsourced trucks. It operates different types of trucks on the basis of design and size along with varying capacities. The company serves a broad range of industries, including the fast moving consumer goods (FMCG), white goods, food, textiles and apparel, furniture and fixture, pharmaceutical, plastics and metal. It’s truck load delivery services operates through a hub-and-spoke model which enables it to transport various parcel sizes and provide customers with access to multiple destinations for booking and delivery of goods.

To part finance working capital and general corpus fund needs, STL is coming out with a maiden IPO of 954000 equity share of Rs. 10 each with a fixed price of Rs. 130 per share to mobilize Rs. 12.40 crore. Issue consists of 204000 equity shares as a fresh issue and 750000 equity shares by offer for sale. Issue opens for subscription on 29.09.17 and will close on 05.10.17. Minimum application is to be made for 1000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Aryaman Financial Services Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Issue constitutes 27.30% of the post issue paid up capital of the company. Its entire equity is issued at par. It has also given bonus in the ratio of 5 for 2 in September 2016. Post issue, its current paid up equity capital of Rs. 3.29 crore will stand enhanced to Rs. 3.49 crore.

On performance front, STL has posted revenue/net profits of Rs.81.41 cr. / Rs. 0.23 cr. (FY14), Rs.93.16 cr. / Rs. 0.47 cr. (FY15), Rs. 88.46 cr. / Rs. 1.04 cr. (FY16) and Rs. 87.75 cr. / Rs. 1.58 cr. (FY17). Thus while its top line has shown declining trends for past two fiscals, its bottom line has shown rising trends. It has posted an average EPS of Rs. 3.69 and average RoNW of 8.68% for last three fiscals. Issue is priced at a P/BV of 2.92. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of around 28.7 against industry average of around 26. Thus issue is fully priced.

On merchant banker’s front, this is the 17th mandate from its stable in past three fiscals. Out of last 10 listings, 2 opened at a discount to offer price, rest opened with 0.01% to 20% premium to issue price.

Conclusion: Since issue is fully priced, considering prospects of the logistics sector, investment for long term may be considered.


Conclusion / Investment Strategy

Since issue is fully priced, considering prospects of the logistics sector, investment for long term may be considered.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 27, 2017

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

Shreeji Translogistics IPO FAQs

  1. 1. Why Shreeji Translogistics IPO?

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

  2. 2. How is Shreeji Translogistics IPO?

    Read the Shreeji Translogistics IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Shreeji Translogistics IPO what should investors do?

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

  4. 4. Is Shreeji Translogistics IPO good?

    Our recommendation for Shreeji Translogistics IPO is to subscribe.

  5. 5. Is Shreeji Translogistics IPO worth Investing?

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

  6. 6. When will Shreeji Translogistics IPO allotment status?

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

  7. 7. When will Shreeji Translogistics IPO list?

    The Shreeji Translogistics IPO will list on Friday, October 13, 2017, at BSE SME.








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