Ashapura Logistics Limited IPO

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They utilize an ‘asset-based’ business model, owning or leasing necessary assets like commercial vehicles, containers, and warehouses. They maintain a fleet of 250 commercial trucks (181 owned by their subsidiary, Jai Ambe Transmovers Private Limited, and 69 by their company) and 60 containers of 40 TEUs. Their warehouse network includes seven locations across Gujarat, Maharashtra, Karnataka, and Tamil Nadu.

Technology and Customization

They emphasize a ‘technology-first’ culture, using software like IMPEX for cargo handling and transportation operations. They are developing additional software for the transportation segment, focusing on demand generation, track and trace, fleet operations, pricing control, and vendor ecosystem enablement.

Subsidiaries

They have three subsidiaries:
i. Jai Ambe Transmovers Private Limited: Specializes in transportation.
ii. Ashapura Warehousing Private Limited: Focuses on warehousing and distribution.
iii. Amanzi International Private Limited: Engages in logistics solutions.

Customer Base

They serve a diverse range of industries, including automotive, paper, textile, and steel. In recent years, they have catered to 560 customers in 2024, 536 in 2023, and 508 in 2022. Notable clients include Ford India Private Limited, Piramal Glass Private Limited, TT Steel Services Private Limited, and JK Paper Limited.

Revenue Streams

Their revenue is derived from four main business verticals:
i. Cargo Handling                                               ii. Transportation                                iii. Warehousing and Distribution
iv. Other services, including coastal movement

Objects of the Ashapura Logistics Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. The company's funding capital expenditure requirement is for the purchase of trucks (" Vehicles") and ancillary equipment ("Equipment"). ii. Construction of warehouses at the facilities located at Mundra, Gujarat iii. Funding the incremental working capital requirement of our company iv. General Corporate Purposes
DRHP of Ashapura Logistics Limited IPO
RHP of Ashapura Logistics Limited IPO

Ashapura Logistics Limited IPO Details:

Open Date: Jul 30 2024
Close Date: Aug 01 2024
Total Shares: 3,657,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 52.66 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 136 - 144 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 06 2024

Promoters And Management:

Mr. Sujith Chandrasekhar Kurup, aged 52, is the Promoter, Chairman, and Managing Director of the Company. He holds a degree from S.A. Rajas Polytechnic and has over 25 years of experience in the logistics industry. Appointed as the First Director since the company's incorporation on April 02, 2002, his role was changed to Managing Director for a 5-year term starting September 01, 2023, by a special resolution of shareholders. Later, a Board Resolution appointed him as Chairman and Managing Director. Mrs. Chitra Sujith Kurup, aged 46, is the Promoter and Whole-Time Director of the Company. She holds a Bachelor of Education in Natural Science from the University of Kerala and has over 15 years of experience in the logistics industry. Appointed as Director on July 26, 2006, her role was later changed to Whole-Time Director for a 5-year term starting February 02, 2024, by a special resolution of shareholders. Mr. Thomaskutty Varghese, aged 51, is an Independent Director of the company. He holds a Master's degree in Oceanography from Cochin University of Science and Technology and is a Chartered Marine Scientist. He also holds a Doctorate in Philosophy. With over 19 years of experience in Port Planning and Ocean Engineering, he was appointed as a Non-Executive Independent Director on March 18, 2024, by a resolution of shareholders.

Financials of Ashapura Logistics Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 22,697 22,182 19,901
Other Income 17 79 34
Total Revenue 22,714 22,260 19,935
Direct Expenses 19,298 18,286 15,375
Employees Benefit Expenses 875 1,058 1,123
Other Expenses 406 607 757
EBITDA 2,134 2,310 2,678
OPM (%) 9.39% 10.38% 13.44%
Depreciation & Amortisation 565 679 661
EBIT 1,569 1,631 2,017
Finance Cost 545 369 355
PBT 1024 1,262 1,662
Tax 236 315 427
PAT 788 947 1235
NPM (%) 3.47% 4.25% 6.20%
No.of Shares 135.56 135.56 135.56
EPS 5.81 6.98 9.11

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Ashapura Logistics Limited 199 12 9.11 15.8 144 195
S J Logistics (India) Limited 271 23 15.61 37.4 583 845
* All the data is as per FY24.

Recommendation on Ashapura Logistics Limited IPO:

1. Ashapura Logistics Limited is an integrated logistics company in India, offering a broad spectrum of services across four primary segments: i. Cargo Handling and Freight Forwarding                         ii. Transportation iii. Warehousing and Distribution                                       iv. Other Services 2. Technological Integration Their technology-enabled ‘asset-based’ business model enhances their ability to offer customized logistics solutions. They have developed proprietary software (IMPEX) to streamline cargo handling and transportation operations. Additionally, they are developing software dedicated to their transportation segment. Their technological capabilities encompass demand generation, track and trace, fleet operations, pricing control, and vendor ecosystem enablement, promoting a ‘technology first’ culture within their organization. 3. Subsidiaries They have three subsidiaries: i. Jai Ambe Transmovers Private Limited              ii. Ashapura Warehousing Private Limited iii. Amanzi International Private Limited 4. Customer Base and Market Presence Their diverse customer base spans multiple industries, including automotive, paper, textile, and steel. Some of their marquee customers include Ford India Private Limited, Piramal Glass Private Limited, TT Steel Services Private Limited, and JK Paper Limited. 5. Competitive Landscape The logistics industry is highly competitive, particularly in the road transport segment, which is fragmented and unorganized. They compete with various local, regional, and global logistics service providers, including S J Logistics (India) Limited and Tiger Logistics Limited. 6. SWOT Analysis :- Strengths:- i. Diverse Services Portfolio            ii. Experienced Management                   iii. Asset-based Business Model iv. Skilled Employees Weaknesses:- i. Regulatory Challenges               ii. Dependency on Economic Conditions     iii. Capital Intensive Business Opportunities:- i. Technology Integration                ii. Infrastructure Development                iii. E-commerce Growth Threats:- i. Geopolitical Risks                         ii. Supply Chain Disruptions 7. The Revenue has Decreased from Rs.226 Crores in FY22 to Rs.199 Crores in FY24. 8. The EBITDA has Increased from 21 Crores in FY22 to 26 Crores in FY24. 9. The PAT has Increased from 8 Crores in FY22 to 12 Crores in FY24. 10. As per FY24, CFO/EBITDA is 0.99, and EPS is 9.11, 11. Market Capitalization is 195 Crores and P/E is 15.8x based on FY24.

Lead Manager of Ashapura Logistics Limited IPO:

  1. Beeline Broking Limited

Registrar of Ashapura Logistics Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Ashapura Logistics Limited B-902 Shapath Hexa Opp. High Court, S.G. Highway Sola, Ahmedabad- 380060, Phone: 079-66111150 Email: cs.compliance@ashapura.in Website: https://ashapura.in/

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