Premier Roadlines Limited IPO

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They are a logistics company specializing in surface transportation solutions for businesses across various sectors. Their service range covers the transportation of goods weighing from 1 metric ton (MT) up to 250 MT. Their logistics offerings include general transportation services, project logistics, and handling over-dimensional and overweight cargo. They offer these services on a Pan-India basis and also operate in neighboring countries like Nepal and Bhutan.

Key Service Offering

They specialize in point-to-point logistics services, where they transport goods from the customer’s location to the delivery point. Their core clientele is business-to-business (B2B) customers under their Contract Logistics division. These clients require the transportation of bulk goods across India and neighboring countries.

Certifications and Accreditations
Incorporated in 2008 and accredited by the Indian Bank’s Association, we hold ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications.

Operations and Technology

They logistics network spans India through 28 branch offices in major cities like Delhi, Mumbai, Bengaluru, and Chennai. They partner with small fleet owners and agents for transportation equipment such as trailers and hydraulic axles. Their centralized IT system enables real-time monitoring across their network.

Notable Clients
They serve prominent clients including KEC International Limited, Tata Project Limited, G R Infraprojects Ltd, and Tata Power Solar Systems Limited.

Objects of the Premier Roadlines Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objectives: i. Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company; ii. Purchase of vehicle for commercial purposes; iii. To meet working capital requirements; and iv. General Corporate Purpose.
DRHP of Premier Roadlines Limited IPO
RHP of Premier Roadlines Limited IPO

Premier Roadlines Limited IPO Details:

Open Date: May 10 2024
Close Date: May 14 2024
Total Shares: 6,024,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 40.36 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 63 - 67 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 17 2024

Promoters And Management:

Virender Gupta, is Promoter and Chairman & Managing Director of the Company. He has been on the Board of Directors of the Company since incorporation. He holds a bachelor’s degree in commerce from University of Delhi. He has a work experience of more than 24 years in the field of 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. He drives the organization’s goals and visions with a keen eye on industry trends and business strategies. Rakhi Gupta, is Promoter and Whole Time Director of the Company. She has been on the Board of Directors of the Company since incorporation. She holds a bachelor’s degree in Arts from University of Delhi. She has a work experience of 15 years in the field of logistics Industry. She is responsible for general business and administration functions in the Company. Samin Gupta, is Promoter and Whole Time Director & Chief Financial Officer of the Company. He has been on the Board of Directors of the Company since 2022. He has completed his Bachelor in Business Administration in Finance and Accountancy from Christ University in 2021 and also holds the degree of Master’s of Science in Supply Chain and Logistics Management from University of Warwick, United Kingdom in 2022. He has a work experience of more than 1 year in the field of Logistics & Transportation Industry. He is responsible for the finance and accounting functions of the Company. He is a second-generation entrepreneur and plays a pivotal role in business planning and development along with the overall management of the Company. He is currently looking after the operations of the Company .

Financials of Premier Roadlines Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
10M-FY24
Revenue from Operations 9,383 13,862 19,193 17,417
Other Income 33 7 13 4
Total Revenue 9,416 13,869 19,206 17,421
Cost of operating expenses 8,111 11,954 16,518 14,648
Employees Benefit Expenses 632 795 956 789
Other Expenses 199 331 426 449
EBITDA 474 789 1,305 1,534
Depreciation & Amortisation 59 63 69 74
Finance Cost 198 203 271 283
EBIT 415 726 1,236 1,460
OPM (%) 5.03% 5.69% 6.80% 8.81%
PBT 217 523 965 1178
Tax 62 134 247 303
PAT 155 389 719 875
NPM (%) 1.65% 2.80% 3.74% 5.02%
No.of Shares 228.62 228.62 228.62 228.62
EPS 0.67 1.69 3.14 3.82

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Premier Roadlines Limited 192 7 3.14 21.3 67 153
VRL Logistics Limited 2,649 323 36.58 38.2 559 4,887
AVG Logistics Limited 427 8 7.08 19.3 536 714
Ritco Logistics Limited 748 25 10.10 19.4 247 605
* All the data is as per FY23.

Recommendation on Premier Roadlines Limited IPO:

Review and Recommendation of Premier Roadlines by team IZ is 4/10. 1. Premier Roadlines Limited is a leading logistics solutions provider, specializing in surface transportation of goods ranging from 1 MT to 250 MT across India and neighboring countries such as Nepal and Bhutan. 2. Their services include general transport, project logistics, and handling over dimensional/overweight cargo, tailored primarily for B2B customers under their Contract Logistics division. They offer point-to-point service, picking up goods directly from customers' premises and delivering them to specified locations. 3. They face competition in a highly fragmented and competitive goods transportation market. Their competitive edge is maintained through high-quality service, reliability, competitive pricing, and versatile vehicle offerings, positioning them as a preferred logistics partner for major clients like KEC International, ThyssenKrupp, and Tata Power Solar Systems. 4. The Revenue has Increased from Rs.94 Crores in FY21 to Rs.192 Crores in FY23. 5. The EBITDA has Increased from 4 Crores in FY21 to 13 Crores in FY23. 6. The PAT has Increased from 1.5 Crore in FY21 to 7 Crores in FY23. 7. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 4.59, 8. Market Capitalization is 153 Crore & P/E is 14.59x based on FY24.

Lead Manager of Premier Roadlines Limited IPO:

  1. Hem Securities Limited

Registrar of Premier Roadlines Limited IPO:

  1. Maashitla Securities Pvt. Limited.

Company Address:

Premier Roadlines Limited B-870, Near Church, New Ashok Nagar, New Delhi – 110096 Phone: +91-11- 4401 5000 Email: cs@prlindia.com Website: http://www.prlindia.com/

Discussion on Premier Roadlines Limited IPO:

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