RITCO Logistics Limited IPO
(i) Ritco Logistics Limited is a company engaged in the business of providing goods transport service along with warehousing facilities. The company provides a range of services including Contract Logistics, Less than Truck Load (LTL) and Fleet Rental Services.
(ii) The company primarily serves to industrial customers who need to transport bulk quantities of their goods within India. The major portion of the revenue comes from Contract Logistics. In 2017-18, Contract Logistics services contributed 78.73% of total revenue. The company has built a widespread transportation network of 30 branches in 14 States and 1 Union Territory across India. It owns a fleet of 256 heavy commercial trucks of different sizes and carrying capacities.
(iii) Marquee Customers of RITCO Logistic:
The goods transportation service business serves a broad range of industries such as Petrochemicals, Petroleums, Metals, Textiles, Fast Moving Consumer Goods (FMCG), Automobiles and Pharmaceuticals, with major contribution from Petrochemicals segment.
Few of the esteemed customers iincludeGail India Limited, Mangalore Refinery & Petrochemicals Ltd., Steel Authority of India Limited, Indian Synthetic Rubber Private Limited (joint venture of Indian Oil Corporation Limited), MCPI Private Limited, Hindustan Unilever Limited, Exide Batteries Ltd., Patanjali Parivahan Pvt. Ltd., Indian Oil Corporation Ltd. etc.
As on date of Draft Red Herring Prospectus, they have ongoing contracts with Government enterprises such as ONGC Petro-additions Ltd, Brahmaputra Cracker and Polymer Limited, Mangalore Refinery and Petrochemicals Limited, Steel Authority of India Limited, Haldia Petrochemicals Limited and esteemed Public Companies such as MRF Limited, Hindustan Unilever Ltd., JK Tyre & Industries Ltd., Emami Limited, Perfetti Van Melle India Pvt. Ltd etc. for providing contract logistics solutions.
(iv) Financials of RITCO Logistic:
The total Revenue of the Company stood at Rs. 343.91 crores, Rs. 328.96 crores and Rs. 314.16 crores for 2018, 2017 and 2016 respectively.
The PAT for the same period was Rs. 10.27 crores, Rs. 3.80 crores and Rs. 1.44 crores respectively. The company has 342 full-time employees on its payroll.
Objects of the RITCO Logistics Limited IPO:
RITCO Logistics Limited IPO Details:
| Open Date: | Jan 28 2019 |
| Close Date: | Jan 30 2019 |
| Total Shares: | 6,600,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Build Issue IPO |
| Issue Size: | 48.18 Cr. |
| Lot Size: | 1600 Shares |
| Issue Price: | ₹ 71-73 Per Equity Share |
| Listing At: | BSE SME |
| Listing Date: | Feb 07 2019 |
Promoters And Management:
Financials of RITCO Logistics Limited IPO:
| Year | Revenue(lacs) | PAT(lacs) | EBITDA Margins | Profit Margins | Outstanding Shares(lacs | EPS |
| FY14 | 25,473.56 | 157.36 | 4.1% | 0.6% | 134.39 | 1.17 |
| FY15 | 31,361.53 | 306.41 | 4.1% | 1.0% | 134.39 | 2.28 |
| FY16 | 31,416.47 | 144.7 | 3.0% | 0.5% | 134.39 | 1.08 |
| FY17 | 32,896.06 | 380.81 | 4.4% | 1.2% | 134.39 | 2.83 |
| FY18 | 34,391.49 | 1027.89 | 8.4% | 3.0% | 194.77 | 5.28 |
| Year | D/E [<1.5] | Current Ratio |
| FY14 | 1.6 | 1.24 |
| FY15 | 1.1 | 1.50 |
| FY16 | 1.5 | 1.43 |
| FY17 | 1.3 | 1.64 |
| FY18 | 1.9 | 1.59 |
Comparison With Peers:
| Company | FV | Rev(Cr) | PAT | NPM | Mcap(cr) | EV(cr) | EPS | P/E | Adj. P/E | RONW) | Mcap/sales |
| Ritco Logistic | 10 | 343 | 10.27 | 3.0% | 184 | 261 | 5.28 | 13.8 | 19.58 | 12.2% | 0.54 |
| Mahindra Logistics | 10 | 3224 | 62.19 | 1.9% | 3582 | 3542 | 8.87 | 56.93 | 56.13 | 14.80% | 1.11 |
| VRL Logistics | 10 | 1936 | 92 | 4.8% | 2455 | 2504 | 10.17 | 26.64 | 27 | 15.51% | 1.27 |
| TCI | 2 | 2202 | 103 | 4.7% | 2332 | 2699 | 13.53 | 21.51 | 25.46 | 15.24% | 1.06 |
Recommendation on RITCO Logistics Limited IPO:
Lead Manager of RITCO Logistics Limited IPO:
Registrar of RITCO Logistics Limited IPO:
Company Address:
Bid Details of RITCO Logistics Limited IPO as on
30 Jan 2019 | 05:00:00 PM
| Category | No.of shares offered | No. of shares bid |
|---|---|---|
| 3,132,800 | 5,710,400 | |
| 3,132,800 | 3,006,400 | |
| 334,400 | 334,400 | |
| 6,600,000 | 9,051,200 |
| QIBs | No |
| QIBs+HNIs Subscription | 1.82X |
| Retail Subscription | 0.96X |
| Total Subscription | 1.39X |
Discussion on RITCO Logistics Limited IPO:
9 Comments
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Good issue
logistic sector is in demand
dont forget earlier panthomath issues like maheswari and vasu logistic are both up between 50 to 100 % the issue price
keep holding this gem for great returns. It can be another multibagger
Promoters selling their stakes is negative for the company.
Features of the Company
1. Wide transportation Network in India
2. Large Fleet of Transportation Vehicles and arrangements for outsourced trucks
3. Diverse customer base
4. Experienced Senior Management / Management expertise
5. Process and Technology
6. Incentive Schemes, Training & Road Safety Awareness programmes for Drivers
7. Certifications, Awards, and Accreditations
Hi,
So considering everything (including the upcoming union budget) would you suggest apply? or avoid? It’s a BSE IPO, would there be a liquidity drought? Also which one out of Ritico and Surani appears poised to offer certain returns (if allotted)
An early response from your side would be greatly appreciated..
RITCO-( Promoters selling the stakes when Mcap<200 Cr is not good)
The company is good, good business, and Good Clientele. However, we need to back to 4-5 years ago when SME platform was launched for BSE and NSE to help small companies raise funds as funding from Banks, NBFC and MFs were hard to get. The prime purpose was to fund these companies for the working capital requirement, reduction of debt, or for expansion. Lately, some promoters are using these platform to sell their stakes and earn some profit. This is the only problem I find in this SME promoters selling their stake when Mcap of the company is less than 200 Cr. The peers of the company are having Mcap of more than 2000 Cr, so had they do not have this vision that someday RITCO will also join 2000 Cr Mcap club.
Surani Steel
I like this company fundamentally. They have shown good growth in the last 5 years and the sector is also promising. However, the guarantee of listing gain in SME depends upon promoters and LM. How well they support the price on listing day. New rules of T2T for 15 days also restricted the trading and hence the big listing gains like the way we saw in 2016-17 are things of past.
Ok . Thank you . So considering the post divestment promoter stake of over 70%, is Ritco still avoidable? Or low valuations coupled with the LM track record can still bring about some listing gains?
P/E based on FY18 ( Pre Issue)
1. PAT= 1027.89 Lakh
2. Shares=194.77 Lakh
3. EPS=5.28
4. P/E=13
P/E based on FY18 ( Post Issue)
1. PAT= 1027.89 Lakh
2. Shares=252.44Lakh
3. EPS=4.07
4. P/E=18
The Company has its Corporate Office located in Gurugram, Haryana and the consignments are booked through their Branch Offices located in Maharashtra, Gujarat, Assam, Chhattisgarh, Goa, Haryana, Karnataka, Madhya Pradesh, Tamil Nadu, Uttar Pradesh, Uttrakhand, West Bengal, Telangana, Delhi and Rajasthan.
They own a fleet of 256 vehicles comprising of heavy commercial trucks of different sizes and carrying capacity as per the requirement of customers.
They also engage third parties for providing us with the assets necessary for our operations such as vehicles (customized and containerized), warehouses as well as manpower.
1. It is a mix of OFS and Fresh Issue.
2. Total Shares to be offered in the IPO = 66,00,000.
3. Fresh Issue= 50,00,000
4. OFS= 16,00,000 [ 7,67,000 EQUITY SHARES BY MR. MAN MOHAN PAL SINGH CHADHA, and 8,33,000 EQUITY SHARES BY MR. SANJEEV KUMAR ELWADHI ] . Both are promoters of the company.