S J Logistics (India) Limited IPO

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  1. Company Background:
    • The company was initially established as a proprietorship concern in the year 2000 by the promoter Rajen Hasmukhlal Shah.
    • In 2003, the business expanded into freight forwarding and was incorporated as “SJ Logistics (India) Private Limited.”
  2. Evolution and Growth:
    • Since its inception, the company has grown its presence, expanded services, and increased capabilities in freight forwarding.
    • Over the years, the company diversified its services to cover multimodal transportation, regulatory compliance (custom clearance), and other related services.
  3. Services Offered:
    • Key services include freight forwarding, custom clearance, transportation handling, multimodal transportation, regulatory compliance, and project cargo handling.
    • Project cargo handling involves detailed planning and technical experience, catering to specific requirements for the transport of oversized, overdimensional, critical, or high-value cargo.
  4. Global Operations:
    • The company operates from its registered office in Thane and provides international logistics services through a network of partners and vendors.
    • International logistics services are offered via air, sea, and surface transportation modes.
    • Regulatory compliance services, including customs clearance, are facilitated through a network and connections established over the years.
  5. Bill of Lading and Security Measures:
    • The company processes over 3100 bills of lading to various countries/regions, including African countries, South American countries, Australia, Bangladesh, European countries, Gulf countries, Southeast Asian countries, Russia, the United States, etc.
    • The company issues House bills of lading for consignments moving from India to Brazil through agency arrangements, providing an additional layer of security for customers’ goods.
  6. Global Partnerships and Agreements:
    • The company has entered into mutual cooperation or agency agreements with parties in various countries such as Ecuador, Brazil, Chile, Peru, the United States, Paraguay, Bolivia, Hong Kong, China, Taiwan, Vietnam, and others, for logistics and freight forwarding operations.
  7. Leadership and Expertise:
    • The growth of the company is attributed to the industry experience and guidance of the promoter, Rajen Hasmukhlal Shah, who has around 33 years of experience in the logistics and shipping industry.
    • The Whole Time Director and CFO, Jeet Rajen Shah, with around 5 years of industry experience, oversees financial and statutory compliances.
  8. Subsidiary Companies:
    • The company has two subsidiary companies: SJA Logisol India Private Limited, engaged in transportation and logistics services, and S. J. L. Group (Singapore) Pte. Ltd., formed in Singapore, providing freight forwarding, packing, and crating services.
  9. Commitment to Quality and Customer Service:
    • The company is committed to providing quality services at reasonable prices, maintaining industry standards, and meeting customers’ business requirements.
    • It aims to develop long-term business relationships with customers.

Objects of the S J Logistics (India) Limited IPO:

The Net Proceeds are proposed to be used by the details below: 1. Repayment and/or pre-payment, in whole or part, of certain borrowings availed by the Company. 2. To meet working capital requirements 3. General Corporate Purpose.
DRHP of S J Logistics (India) Limited IPO
RHP of S J Logistics (India) Limited IPO

S J Logistics (India) Limited IPO Details:

Open Date: Dec 12 2023
Close Date: Dec 14 2023
Total Shares: 3,840,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 48 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 121 - 125 Per Equity Share
Listing At: NSE Emerge
Listing Date: Dec 19 2023

Promoters And Management:

Rajen Hasmukhlal Shah, is the Promoter and Chairman & Managing Director of the Company. He has been associated with the Company since incorporation. He is a qualified member of the Institute of Chartered Accountants of India since year 1990. He has a work experience of more than 33 years in the field of shipping, Logistics & Transportation Industry. He has been instrumental in taking major policy decision of the Company. He is playing vital role in formulating business strategies and effective implementation of the same. He is responsible for the business development, Legal operations & Compliance and overall management of the business of the Company. Under his guidance, the Company has witnessed continuous growth. Jeet Rajen Shah, is a Whole Time Director and Chief Financial Officer of the Company. He has completed his Master of Global Business (MGB) from S P Jain School of Global Management in 2018. He has a work experience of over 5 years in the shipping, Logistics & Transportation Industry and is responsible for handling the financial & accounting activities, Taxation, statutory compliance, Human Resource, Administration and effective implementation of the same and played a significant role in the growth of the company. Kulshekhar Kumar, is a Whole Time Director of the Company. He has completed his Master Programme in international Business Management from Institute of International Business and Research in 2002. He has a work experience of 21 years in the field of sales and marketing. He looks after the business development, Marketing, general operations, customer relations management of the Company.

Financials of S J Logistics (India) Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 12,393 10,362 13,431 10,309
Other Income 10 169 70 29
Total Revenue 12,403 10,531 13,501 10,339
Purchases of Services 11,326 9,520 11,135 8,404
Employee benefits expenses 336 279 608 248
Other Expenses 363 200 510 345
EBITDA 379 532 1,248 1,342
Depreciation & Amortisation 51 52 44 20
Finance Cost 211 223 250 159
EBIT 328 480 1,204 1,322
OPM (%) 3.05% 5.05% 9.24% 12.98%
PBT 117 256 953 1163
Tax 31 68 192 232
PAT 86 188 762 931
NPM (%) 0.70% 1.79% 5.64% 9.01%
No.of Shares 144.83 144.83 144.83 144.83
EPS 0.59 1.30 5.25 6.42
 

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
S J Logistics (India) Limited 134 8 5.25 23.8 125 181
Cargotrans Maritime Limited 70 2 4.85 17.5 74.5 30
Patel Integrated Logistics Limited 278 5 0.76 22.2 16.8 109
Tiger Logistics (India) Limited 433 23 21.95 37.1 555 587
Total Transport Systems Limited 590 5 3.25 200.0 124 200
* All the data is as per FY23.

Recommendation on S J Logistics (India) Limited IPO:

Review and Recommendation of S J Logistics SME IPO by IZ team is 5/10

1. Business Overview

a) Core Activities: Specializing in freight forwarding, custom clearance, and transportation handling. Distinct focus on multimodal transportation, regulatory compliance, and project cargo handling. b) Global Operations: Headquartered in Thane, India, with an extensive network facilitating international logistics services across multiple continents. c) Innovation and Security in Services: Over 3100 bills of lading processed annually. Unique House bills of lading system for additional security on key routes. d) Strategic Alliances: Partnerships and agreements with logistics players in crucial markets like South America, Asia, and Europe.

2. Object of the Issue

a) Repayment of Borrowings: The IPO aims to repay/pre-pay certain outstanding borrowings, reducing financial leverage and interest costs. b) Working Capital Requirements: Funding to bolster the working capital, essential for sustaining and expanding operations.

3. Financials

a) Revenue Growth: In the FY21, the revenue was INR 123 Cr which has increased to INR 134 Cr in FY23. In the First 6 Months of Fy24, they have clocked a Revenue of INR 100 Cr which is a very good jump in the business. However, they have very high receivables which is a point of concern. Due to this they have negative cash flow from operations. b) Profitability: PAT has increased from INR 86 Lakh in Fy21 to INR 7 Cr in Fy23. c) Operational Efficiency: The OPM and NPM for FY23 stands at 9.24% and 5.2% respectively. d) EPS ( Annualised FY24 ) = 18/1.448 = 12 , So, P/E is 10x. Seems reasonable.

4. Management

a) Rajen Hasmukhlal Shah (Promoter and Chairman & MD): Chartered Accountant with over 33 years in the logistics sector. His visionary leadership has been pivotal in the company's growth. b) Jeet Rajen Shah (CFO): Master of Global Business graduate with 5 years of industry experience, managing finance, statutory compliances, HR, and administration. c) Kulshekhar Kumar (Whole Time Director): Master in International Business Management with 21 years of experience in sales and marketing, leading business development and customer relations.

5. Valuation

The company's valuation in terms of P/E ratio looks attractive as compared to other peers.

Lead Manager of S J Logistics (India) Limited IPO:

  1. Hem Securities Limited

Registrar of S J Logistics (India) Limited IPO:

  1. Maashitla Securities Pvt. Limited.

Company Address:

S J Logistics (India) Limited 901/902/903, Centrum Opposite Raila Devi Lake, Wagle Estate, Thane (West)-400604, Phone: +91 022 61982800 Email: cs@sjagroup.co.in Website: https://www.sjlogistics.co.in/

Discussion on S J Logistics (India) Limited IPO:

1 Comment

    1. Outstanding Trade Receivables:

    a) As of September 30, 2023: Rs. 55 Cr

    b) As of March 31, 2023: Rs. 48 Cr

    c) For the year 2022: Rs. 40 Cr

    d) For the year 2021: Rs. 40 Cr

    2. Overdue Outstanding for More Than One Year:

    a) As of September 30, 2023: Rs. 3.12 Cr

    b) As of March 31, 2023: Rs. 6 Cr.

    c) For the year 2022: Rs. 2.04 Cr

    d) For the year 2021: Rs. 1.66 Cr

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