(i) We are an organised third-party logistics service operator offering logistics solutions to a wide range of customers. We offer Full Truck Load (FTL) and “hub-and-spoke” transportation model and warehousing services to select clients with pan-India distribution network and automated technology systems. Our customers operate in various sectors across India, including automotive and heavy engineering, telecom, food and agro, fast-moving consumer goods (“FMCG”), paint and dairy. We believe our business model enables us to act as a service provider that can comprehensively cover our customers’ logistics requirements. We provide solutions that enable our customers to leverage our distribution network which optimises the performance, cost and efficiency of their supply chains, shortening their lead-time to market resulting in lower inventory costs to the customer.
(ii) We offer our customers services in three key areas (1) Transportation whereby we provide point-to-point, less-than truck-load, time-definite transportation services; (2) Warehousing whereby we provide warehousing, distribution and cold-chain warehousing; and (3) Value-added Services including, temperature-controlled logistics, supply chain solutions and cargo handling services at integrated check posts
(iii) As of September 30, 2017, we have five (5) trans-shipment centres at Guwahati, Bangalore, Hyderabad, Delhi-UP border, and Kundli (Delhi-Haryana border) and forty nine (49) branches across India, covering twenty three (23) States as of September 30, 2017. We operate two hundred sixty four (264) owned containerised vehicles which are GPS-enabled vehicles, of which eighty five (85) are refrigerated (reefer) trucks. We provide warehousing facilities to select customers and our warehouses are well connected to several manufacturing and consumption clusters in India aggregating to 3.54 lakh square feet. We have warehouses in Modinagar, Ghaziabad, Delhi and Panipat. We are in the process of setting up additional large format, multi-user warehouses in certain strategic locations and have acquired land at Agartala in Tripura and Mysore in Karnataka adding 1.08 lakhssquare feet which will enable the expansion of our warehousing space to 4.62 lakhssquare feet by April, 2019.
(iv) We have adopted technology and processes, including (i) a system on loading and unloading of orders with accuracy; (ii) GPS-enabled trucks that provide real-time visibility of shipments; (iii) data logger for controlling temperature in reefers and (iv) driver and truck management systems. Our warehouses are equipped with information and technology services like warehouse management systems (WMS) for optimal management and storage in the warehouse
(i) Mr. Sanjay Gupta, aged 50 years, is the Managing Director & Chief Executive Officer of our Company. He has been the Director of our Company since incorporation. He is a Commerce Graduate from Maharashi Dayanand University , Rothak, Haryana. He has more than 30 years of experience in multi- model logistics, warehousing and retail logistics. His knowledge, good management skill, excellent decision making, controlling and strategic planning have courage to start his own entrepreneur. Even in a short span of time he has achieved an unexpected growth in the business.
(ii) Ms. Asha Gupta, aged 49 years, is the Executive Director of our Company. She has been the Promoter & Director of our Company since incorporation. She is an Art’s Graduate from Maharashi Dayanand Univeersity, Rothak, Haryana. She has more than 10 years of experience in logistics and warehousing. Because of her ability, experience, inter personnel skill and expert in marketing strategies, she has always achieved a steep growth in transportation business and has always participated in the competitive bidding of orders.
Authorized Share Capital
( 1,20,00,000 shares at FV@10)
Issued, Subscribed,& Paid-up Share Capital Before Issue
(72,08,000 Shares at FV@10)
(30,90,000 Shares at FV@10)
Reservation for Market Maker
(1,54,800 Shares at FV@10)
Net Issue to Public
(30,90,000-1,54,800= 29,35,200 Shares)
HNI Quota-Not less than 4,41,600
Retail Quota-Not less than 10,27,200
Paid Up Share Capital after the issue
Financials of AVG Logistics Limited IPO as per DRHP:
1. Balance Sheet Snippet[ All Calculation for FY 16-17]
(i) Shareholders’ Fund[Equity] Value
(v) Net Worth(Asset- Liability)
(vi) RONW(PAT/Net Worth)
2. Profit n Loss Snippet
(i) The Revenue of the company in last 4 years is growing at CAGR of 20%[Excellent]
(ii) PAT of the company in last 4 years is growing at CAGR of 23%[Excellent]
(iii)Margins(PBT/Reveune): 2.8 to 3.2% in last 4 years.
(iv) Annualized EPS(post issue)= 6.7[Excellent]
(v) Annualized P/E(post issue)=15[reasonably priced] at the cutoff price of 107
3. Cash Flows Statement( figures in lakhs)
(i) Net Cash Generated from Operation
(ii) Net Cash Generated from Investment
(iii) Net Cash Generated from Financing Activity
(iv) Total[ (i)+(ii)+(iii) ]
(v) Cash and Cash Equivalents at the Beginning of the Year
(vi) Cash and Cash Equivalents at the end of the Year
*Note- The company has shown positive cash flows in last 4 years which augur well for sustained growth in future.
Comparison With Peers:
Name of the Company
AVG Logistics Ltd
Sical Logistics Ltd
Total Transport Systems Ltd
Tiger Logistics Ltd
Recommendation on AVG Logistics Limited IPO:
The company valuation in terms of PE looks reasonably priced as compared to listed peers and the company has shown consistent growth in terms of Revenue and Profit.