(i) Shree Vasu Logistics Limited was Incorporated in 2007, the Company has a reliable, local, national, transportation service that ensures safe and timely delivery of shipments. They provide flexible, effective surfaces solutions to their customers. Their large network ensures customer satisfaction.
3PL( Third Party Logistic) With the widest network, the best of cargo movement facilities and several value-added services enable them one of the preferred distribution solution provider in Chhattisgarh today. The Company caters logistics service to customers includes companies from industries such as FMCG, electronic goods, IT Products, wires and cables, paint industry etc.
(ii) Packing Services They have a coordinated system, that helps them to prepare goods for warehousing, logistics, sale, and end use, for the customer. Packages and labels, help communicate them how to use, transport, recycle or dispose of the package or product.
(iii) Warehousing Services They offer secure storing and warehousing facilities at strategic locations near CFS facilities and at inland depots. Their warehouses are clean, temperature controlled and have flexible work hours.
(iv) Trucking Services They have a reliable, local, national, transportation service that ensures safe and timely delivery of shipments. They provide flexible, effective surfaces solutions to our customers. Their large network ensures customer satisfaction.
As the geography of Chhattisgarh is surrounded by SIX states (viz. Uttar Pradesh, Jharkhand, Orissa, Madhya Pradesh, Maharashtra, and Andhra Pradesh), providing an immense scope for their services, in these adjacent states, where connectivity is approachable & feasible. They possess Clean & Temperature controlled warehouses, equipped with advanced (Safety & Security) equipment for complete vigilance & environment which is Hygienic for storage of goods & Medicines. They are one of the largest conglomerate in CFA & LOGISTICS business in Central & Eastern India. We maintain Quantity with Quality, in delivering our services for ultimate customer satisfaction.
Promoters of Shree Vasu Logistics Limited Company are:
Mr. Bhushan Garg
Mr. Atul Garg
Company Business:
(i) CFA( Carry and Forward Agents)
The Company( Shree Vasu Logistic) provides CFA services. CFA is mainly a third party contract where the company approaches a person who provides CFA services and having a Warehouse in the certain area suitable for company's operations then they agree on few terms and the company providing CFA services will have to work according to the SOP (sales and operating procedures of the company ).
(ii) Warehousing and Inventory Management
The Company also provides warehousing facility to their clients. They have sufficient space and technology to cater the need of today’s logistics sector.
(iii) Transportation Services
The Company also provides Transportation services wherein they receive a package from Clients then they provide warehousing and transport to the desired location as per client’s requirement.
Salient facilities and provisions in the Company(i) Warehousing space of over 8,50,000 Sq.Ft.(ii) Over 450 Dedicated, Young and Trained Personnel.
(iii)156 Fleet of own vehicles for prompt and safe delivery.
(iv)In-house online ERP software – Logistics Management (LMS)
(v) Turnover handled 2200 crores/annum
(vi)Total volumes handled 5.2 lac tons/annum
Raipur - own warehousing capacity of 15 lakh sq.ftSambalpur – own warehousing capacity of 4 lakh sq.ftBilaspur – own warehousing capacity of 2 lakh sq.ft.Bhubaneshwar– rented space of 2 lakh sq.ft.Kolkata– rented space of over 6 lakh sq.ft.
They are developing a big state of art complex with total warehousing capacity of 40 lakh sq.ft. (no shortage of warehouses)
They are also planning to start new operations in New Delhi, Mumbai, Nagpur, Jabalpur, Bangalore, Hyderabad.
Capital Structure:
(i) Authorized Share Capital
(90,00,000 shares at FV@10)
9 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(55,80,000 Shares at FV@10)
5.558 Cr
(iii) Present Issue
( 20,64,000 Shares at FV@10)
2.064 Cr
(iv) Reservation for Market Maker ( 1,08,000 Shares at FV@10)
10.8 Lacs
(v) Net Issue to Public
(20,64,000-1,08,000= 19,56,000 Shares)
2.544 Cr
(vi) QIB & HNI quota-9,78,000
50.0%
(viii) Retail Quota - 9,78,000
50.00%
(ix) Paid Up Share Capital after the issue
7.622 Cr
Financials of Shree Vasu Logistics Limited IPO:
1. Assets and Liabilities Key Parameters
Year
Asset(Lacs)
Liabilities(Lacs)
Net Worth(Lacs)
Book Value
D/E
RONW
Receiveable days
FY13
1746.98
1502.26
244.72
49
6.1
16.23%
78
FY14
1932.1
1574.28
357.82
58
4.4
14.71%
55
FY15
2335.31
1912.01
423.3
68
4.5
15.60%
68
FY16
2549.22
2050.9
498.32
80
4.1
15.10%
67
FY17
2729.54
2151.93
577.61
93
3.7
13.60%
81
6MFY18
3073.8
2378.32
695.48
112
3.4
17%
89
Post Issue
1624.28
21
1.4
Note: The Debt will reduce considerably post issue which is positive for the company. The only issue which I find in the financials is the high Receivable days. In DRHP ,Patel Integrated Logistic Limited is shown as Peers which has receivable days around 72.
2. Profit n Loss Key Parameter
(i) The Revenue of the company in last 5 years ( FY13 to 6MFY18) is 16.42 Cr, 18.06 Cr, 21.78 Cr, 23.02 Cr, 27.69 Cr and 15.10 Cr respectively. The Company is growing at a CAGR of 13.9%. The Company has shown decent Growth in the last 5 years.
(ii) The PAT of the company in last 5 years ( FY13 to 6MFY18) is 39.7 Lacs, 52.7 Lacs 66.2 Lacs, 75.6 Lacs, 78.7 Lacs and 117.9 Lacs respectively. The Company is growing at a CAGR of 18.63%
(iii) The EBITDA Margins of the company for FY13( 22.28%), FY14(22.07%), FY15(22%) ,FY16(20%), FY17(18%) and 6MF18(24%) . The Company has excellent margins in last 5 years.
(iv) P/B(post issue)= 2.14 (at cutoff price of 45)
(v) Annualized EPS(post issue)= 3.08
(vi) Annualized P/E(post issue)= 14.62 at the cutoff price of 45
3. Cash Flow Statement(all figures in Lacs)
Particulars
FY17
FY16
FY15
FY14
FY13
(i) Net Cash Generated from Operation
381.78
359.93
382.63
527.21
527.31
(ii) Net Cash Generated from Investment
-262.04
-298.38
-379.65
-355.73
-371.84
(iii) Net Cash Generated from Financing Activity
-112.88
-67.62
16.3
-133.16
-169.34
(iv) Total[ (i)+(ii)+(iii) ]
6.86
-6.07
19.28
38.32
-13.87
Comparison With Peers:
Sr.No
Name of the Company
FV
EPS
PE
RONW(%)
1
Patel Integrated Logistic Limited
10
4.42
14.49
6.24%
2
Shree Vasu Logistic Limited
10
3.08
14
17.00%
The Issue seems to be fully priced as compare to its peer.
Recommendation on Shree Vasu Logistics Limited IPO:
Review and Recommendation of
Shree Vasu Logistics Limited IPO
from our side is:
The Issue seems to be fully priced as compare to its peer.
Rating: 5/10.
1-5: Fair
5-7: Good
7-10: Excellent
