Orissa Bengal Carrier Limited is a Raipur, Chhattisgarh based logistics company engaged in goods transportation business. The company is one of the IBA approved transporter having ISO 9001:2015 certification for the provision of Quality Management System Service. It serves a broad range of industries, including the steel, coal, aluminium, cement, petrochemicals, paper, marble, tiles, infra, textile, FMCG. The various types of services provided by the company include Full Truck Load Transport Services, Parcel and Part Truck Load Services/less than Truck Load (LTL).The company has a network 45 branch offices spread across the various regions of the country, which serves as strategic hubs for its operations. It has a diversified customer base spreading to over 200 customers as on September 30, 2017. The clientele includes public sector undertakings, corporate and other private players from steel, aluminium, cement, petrochemicals, power, chemicals, marble, tiles, infra, textile, FMCG to name a few.
(i) Ratan Kumar Agrawal, aged 61 years, is Managing Director of our Company. He is one of the promoters of our company. He has been Director of our Company since incorporation and has been designated as Managing Director w.e.f December 1, 2017. He currently plays a crucial role in the Administration & Fleet Management of our Company and operates from our Head office. He has experience of around 24 years in transport and logistics industry and did his matriculation from Haryana Board in the year 1972. He has been Director of our Company since incorporation.
(ii) Shakuntala Devi Agrawal aged 57 years is the Non-Executive Director of our Company. She is one of the promoters of our company and is under matriculate. She has been Director of our Company since incorporation.
(iii) Manoj Agrawal, aged 39 years, is the Promoter and Executive Director of our Company. He has an experience of more than 20 years in transport and logistics industry and is under matriculate. He has been instrumental in the growth and strategy of our business. He currently looks after the operation of Western Region of India from our office at Nagpur. He is an expert in human resources and human relations. He has been on the board since April 7, 1997.
Capital Structure:
Authorized Share Capital
(24,000,000 shares at FV@10)
24 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue
(15,518,790 Shares at FV@10)
15.518 cr
Present Issue
(55,64,000 Shares at FV@10)
5.564 cr
Reservation for Market Maker
2,84,000 Shares at FV@10)
28.40 lakh
Net Issue to Public
55,64,000-2,84,000= 52,80,000 Shares)
5.28 cr
Retail Quota(<2 Lkah)[26,40,000 Shares]
50%
HNI & QIB Quota(>2 Lakh)[26,40,000 Shares]
50%
Paid Up Capital after the issue
21.082 cr
Financials of Orissa Bengal Carrier Limited IPO:
1. Balance Sheet Snippet[ Calculation for FY 16-17]
(i) Shareholders’ Fund[Equity] Value
2811.06 lakh
(ii) Asset
7624.53 lakh
(iii) Liability
4813.47 lakh
(iv) Debt/Equity
1.71( average)
(v) Net Worth(Asset- Liability)
2811.06 lakh
(vi) RONW(PAT/Net Worth)
14%
(vii) P/B
2.25
2. Profit n Loss Snippet
(i) Revenue of last 4 years is growing at CAGR of 12%.
(ii) PAT of the company in (lakhs): (a) FY13- (16.40), (b) FY14-.20 (c )FY15-91.92 (d) FY16- 182.41 (e ) FY17-395.34. The PAT has almost doubled from FY-16 to FY-17 on flat revenue which raises concern.
(iii)Margins(PBT/Reveune): .65 to 1.2% in last 4 years. The company has low margin business.
(iv) Annualized EPS(post issue)= 3.33
(v) Annualized P/E(post issue)=9(reasonably priced) at the cutoff price of 30.
3. Cash Flow Statement
The company was generating positive cash flow continuously in the preceding years till 2016 but got set back in the year 2017 which does not augur well for future growth.
