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Review By Dilip Davda on July 19, 2017
Total Transport Systems Ltd (TTSL) is engaged in providing services for Deconsolidation of cargo, Forwarding and Consolidation of cargoes from all major locations across the globe. TTSL has a standing of more than two decades in international logistics with constant innovations in highest quality and cost-effective services. The company has a Multi-Modal Transport Operator’s License for servicing its customer’s requirements. It also has a Federal Maritime Commission (FMC) license. The company deliberately skipped CHA license to avoid conflict of interest with other Custom Clearing Agents. TTSL’s area of operations includes Sea Freight Forwarding, Consolidation & Deconsolidation of cargo, Air Freight Logistic and Warehousing & Transportation.
To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 3780000 equity share of Rs. 10 each at a fixed price of Rs. 45 per share to mobilize Rs. 17.01 crore. Issue opens for subscription on 25.07.17 and will close on 28.07.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. The issue constitutes 26.42% of the post issue paid up capital of the company. After initial equity issue at par it issued bonus shares in the ratio of 4 for 1 in March 2009, 9 for 1 in December 2009, 4 for 1 in September 2014, 1 for 5 in January 2015, 2 for 3 in March 2015, 1 for 1 in May 2017 and also raised further 526000 shares at a price of Rs. 45 per share. Company’s current paid up equity capital of Rs. 10.53 crore post bonus and preferential issue made in May 2017 that will stand enhanced to Rs. 14.31 crore post issues.
On performance front, the company has (on a consolidated basis) posted revenue/net profits of Rs. 263.26 cr. / Rs. 9.43 cr. (FY14), Rs. 275.79 cr. / Rs. 5.99 cr. (FY15), Rs. 247.02 cr. / Rs. –(15.49) cr. (FY16) and Rs. 213.27 cr. / Rs. 5.77 cr. (FY17). It has posted decline in top line for last two fiscals and incurred huge losses for FY16 and lower net for FY17 with diminishing pattern in profiting years. Last three fiscal’s average EPS on standalone basis is Rs. –(2.01) and on consolidated basis Rs. –(1.38). Its equity more than doubles post March 2017 which is not reflected in this working. If we attribute latest earnings on fully diluted equity post IPO then asking price is at a P/E of 11 plus and at a P/BV of 3.3 plus. On consolidated basis its last three fiscal’s average RoNW is negative at – (50.44). Peers are trading in 20to 35 P/E range. Although it compares well on the basis of P/E, diminishing pattern of top line and bottom line remains major concern.
On merchant banker’s front, this is the 29th SME issue mandate. Last 10 listings 1 opened at discount, 1 at par and the rest above offer price.
Conclusion: Risk savvy cash surplus investors may consider for long term investment.
Review By Dilip Davda on July 19, 2017
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. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. 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 their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About 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.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Total Transport Systems Ltd offers an early investment opportunity in Total Transport Systems Ltd. A stock market investor can buy Total Transport IPO shares by applying in IPO before Total Transport Systems Ltd shares get listed at the stock exchanges. An investor could invest in Total Transport IPO for short term listing gain or a long term.
Read the Total Transport IPO recommendations by the leading analyst and leading stock brokers.
Total Transport IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Total Transport IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Total Transport IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Total Transport IPO.
The Total Transport IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Total Transport IPO allotment status to check.
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