DRS Dilip Roadlines Limited IPO

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(i) DRS Dilip Roadlines Limited was incorporated on July 10, 2009.  The company is engaged in the business of providing high-quality logistics services including Transportation, Packing & Moving and Warehousing.

(ii) DRS Dilip Roadlines Limited are surface transporters and provide only goods transportation services. They provide Full truck loaded ‘FTL’ services to all their customers for transporting goods.

(iii) As on July 15, 2018, they operate and own a fleet of 301 trucks in the name of their Company, have 199 vehicles from there group and have the capacity to hire 450 vehicles. They operate through different types of closed container trucks on the basis of size and capacities. The variety of goods transportation vehicles in their fleet also enables to serve a diverse mix of consignments.

(iv) There packing and moving business is carried under the brand name of ‘Agarwal Packers and Movers’ which has become a renowned name in household relocation across the country. However, the brand ‘Agarwal Packers and Movers’ is shared by their relatives Ramesh Agarwal & family and Rajender Agarwal & family. The Company Law Board, Chennai has permitted the use of brand ‘Agarwal Packers and Movers’ vide its order dated November 17, 2014, to them and our relatives. Since then they operate their packing and moving business under the brand Agarwal Packers and Movers.

(v) For packing and moving services the Company owns composite container vehicle specially designed to suit the household shifting called ‘CHAPP VAN’ (Car, Households, Artifacts, Plants and Pets). This new-concept composite container vehicle supports transport of Car, Household, Artifacts, Plants, and Pets all in one i.e. there is space demarcated for each and every item and ensures better safety and ease of handling varied items. The brand Agarwal Packers and Movers (DRS Group) has been recognized by Limca Books of Records, for CHAPP VAN.

(vi) Revenue from operations for the financial year ending 2015-16, 2016-17 and 2017-18 are 15,302.34 lakhs,14,165.40 lakhs, and 14,248.65 lakhs respectively.

(vii) The Net Profit after tax for the above mentioned periods i.e. in the last 3 years is 50.00 lakhs in F. Y. 2015-16, 108.18 lakhs in F. Y. 2016-17 and 345.39 lakhs in F.Y. 2017-18 as per our Standalone Restated Financial Statements.

DRS Dilip Roadlines Limited IPO Stock Quote & Charts

75.60

0.00%

  • Open: 75.60
  • High - Low: 75.60 - 75.15
  • Previous Close: 75.60
  • Total Traded Volume: 396800
  • Updated On: 14-Dec-2018

Objects of the DRS Dilip Roadlines Limited IPO:

Objective of

DRS Dilip Roadlines Limited IPO

are: (a) Repayment of Unsecured Loans (b) Setting up Additional Warehouse in the state of Telangana (c) Acquiring Additional Branches for Expansion of business (d) Part repayment of our Cash Credit facilities (e) Part repayment of our term loans and (f) General Corporate Purposes

DRS Dilip Roadlines Limited IPO Details:

Open Date: Nov 27 2018
Close Date: Nov 30 2018
Total Shares: 4,200,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Lot Size: 1600 Shares
Issue Price: ₹ 75 Per Equity Share
Listing At: NSE Emerge
Listing Date: Dec 10 2018

Promoters And Management:

Promoters of DRS Dilip Roadlines Limited Company are: Mr. Dayanand Agarwal Mr. Anjani Kumar Agarwal Mr. Sanjay Agarwal

Financials of DRS Dilip Roadlines Limited IPO:

Year Revenue(lakh) PAT(lakh) EBITDA Margins Profit Margins EPS
FY14 13,249.54 -41.16 5.1% NA -1.372
FY15 14,634.30 44.1 6.9% 0.30% 1.47
FY16 15,308.40 50 7.5% 0.33% 1.66
FY17 14,190.82 108.18 7.8% 0.76% 1.527
FY18 14,261.71 345.39 9.5% 2.42% 4.87
IZ Financial Review 1. The Company has a muted growth of 7.75% in the last 5 years. 2. The Employee Expense is decreasing in the last 5 years. Usually, a company which is growing have a rising employee expense. 3. The Current Ratio below 1 is a cause of worry. 4. The company has average EBITDA Margins and PAT margins of 9.45% and 2.41% respectively in FY18. 5. The D/E post Issue is greater than 1.

Recommendation on DRS Dilip Roadlines Limited IPO:

Review and Recommendation of DRS Dilip Roadlines Limited IPO from IZ team is:3/10 IZ IPO Review [ The Logistic Business is very risky as the expense of Fuel, maintenance charges, and accidents of trucks are varying factor. The company is doing business under the brand " Agarwal Packers and Movers" which is used by other group company as well. The dispute regarding the use of the brand is a matter of conflict which is currently in High court. Any adverse decision will impact the earnings of the company. The asking P/E of 32 on FY18 earnings is looking overvalued.]

Lead Manager of DRS Dilip Roadlines Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of DRS Dilip Roadlines Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

DRS Dilip Roadlines Limited 220, 221, 222, 223, 224, Kabra Complex, 61, M. G. Road, Secunderabad, Telangana – 500003 Phone No.: +91- 40- 39818800 / 811 / 822 Fax No.: +91 - 40 - 66200059 Email: info@drsindia.in Website: www.drsindia.in

Bid Details of DRS Dilip Roadlines Limited IPO as on
30-Nov-2018 18:00:00 IST

Category No.of shares offered No. of shares bid
1,986,000 4,027,200
1,986,000 513,600
228,000 228,000
4,200,000 4,768,800
QIBs No
QIBs+HNIs Subscription 2.03X
Retail Subscription 0.26X
Total Subscription 1.14X

Discussion on DRS Dilip Roadlines Limited IPO:

    ***High Risk***

    The Promoters were operating the family business under the trade name Agarwal Packers & Movers along with their brothers Mr. Rajendra Agarwal and Mr. Ramesh Agarwal in DRS Logistics Private Limited. Over the period of time, the business operations were split and at present both the families i.e. our Individual Promoters & their family as well as Mr. Ramesh Agarwal & family and Mr. Rajender Agarwal & family are operating the separate business under same trade name i.e. ‘Agarwal Packers and Movers’.

    Further, there is an ongoing dispute between both the families for using the trade name i.e. ‘Agarwal Packers and Movers’ and litigations pertaining to it are currently pending with the Honorable High Court of Hyderabad. It cannot be assured that in future High Court will be in the favor for usage of the common trade name. Any decision rendered against DRS Dilip Roadlines will affect their business operations and financial conditions.

    Conclusion: This company is also using the brand name of Agarwal Packer and Movers, but if any decision comes against the company then it will definitely affect the operations of the company.

    EPS post Issue Would be:

    1. PAT= 345 lakh
    2. No of Shares outstanding= 150.6
    3. EPS= 2.29
    4. P/E= 32

    Conclusion: The P/E looks slightly on the higher side but giving a brand value and kind of clientele they have, it looks a good bet.

    It is a DRS Group company, which owns a brand called Agarwal Packers and Movers.