RITCO Logistics Limited IPO

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(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.

RITCO Logistics Limited IPO Stock Quote & Charts

60.30

+4.15%

  • Open: 60.30
  • High - Low: 60.30 - 60.30
  • Previous Close: 57.90
  • Total Traded Volume: 6400
  • Updated On: 23-Aug-2019

Objects of the RITCO Logistics Limited IPO:

The Issue includes a fresh Issue and an Offer for Sale. The proceeds from the Offer for Sale will go to selling shareholders. The objects of the fresh issue are: 1. Prepayment or repayment of a portion of Bank Borrowings. 2. To meet Working Capital Requirements. 3. To meet General Corporate Purposes.

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:

Promoters of RITCO Logistics Limited Company are: 1. Mr. Man Mohan Pal Singh Chadha 2. Mr. Sanjeev Kumar Elwadhi.

Financials of RITCO Logistics Limited IPO:

Profit and Loss Statement
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
Leverage and Liquidity Ratio
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
Note: 1. For calculating the financial ratios, the FY18 numbers are taken. 2. The Data is taken from Moneycontrol and DRHP of the RITCO Logistic. 3. The RONW of Ritco Logistic is calculated by considering post issue Net Worth of 84 Cr. 4. The EPS of Peers are calculated by considering closing price of 22.01.2019.

Recommendation on RITCO Logistics Limited IPO:

Review and Recommendation of RITCO Logistics Limited IPO from IZ team is: 4/10

Lead Manager of RITCO Logistics Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of RITCO Logistics Limited IPO:

  1. Link Intime India Private Limited

Company Address:

RITCO Logistics Limited 508, 5th Floor, Jyoti Shikhar Tower, District Centre, Janakpuri, New Delhi - 110058 Email: cs@ritcologistics.com Website: www.ritcologistics.com

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:

    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.