Western Carriers (India) Limited IPO

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They are the largest private, multi-modal, rail-focused, asset-light logistics company in India, specializing in 4PL solutions. In Fiscal 2023, they handled significant container volumes, achieving a 6% share in the domestic market and a 2% share in the EXIM market (Source: 1Lattice Report). With extensive experience in road, rail, and sea/river transportation, they offer customized, end-to-end logistics solutions that cater to both domestic and international (EXIM) cargo.

Scalable Asset-Light Business Model

Their scalable, asset-light business model allows them to provide differentiated 3PL and 4PL solutions, tailored to the complex needs of their customers. They offer a wide range of value-added services across the supply chain, creating integrated, single-window logistics solutions that meet the unique requirements of each client.

Service Offerings and Customer Relationships

They have established long-standing relationships with key customers across various sectors, including metals, FMCG, pharmaceuticals, chemicals, oil and gas, and retail. Notable clients include Tata Steel, Hindalco, Hindustan Unilever, Cipla, and DHL. Their ability to engineer customized supply chains optimized for client-specific targets has contributed to their strong customer retention, with 80% of our Fiscal 2024 revenues coming from clients who have been with them for over three years. Their top 10 customers had a retention rate of 100%.

Commitment to Customer-Centric Service

Their decades of experience, commitment to efficiency, and on-time delivery have made them a trusted partner for many industry leaders. They continue to evolve alongside their customers, ensuring that their services meet their progressing needs, thereby supporting organic business growth.

Conclusion

Their strong market presence, customer-centric approach, and scalable business model position them as a leading player in the Indian logistics industry, poised for continued growth alongside their valued customers.

Objects of the Western Carriers (India) Limited IPO:

The net proceeds of the Fresh Issue, i.e., gross proceeds of the Fresh Issue less the Offer expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilised in the following manner: i. Prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by the Company; ii. Funding of capital expenditure requirements of our Company towards purchase of: a. commercial vehicles; b. 40 feet specialised containers and 20 feet normal shipping containers; and c. reach stackers; and iii. General corporate purposes. Total number of share issue :- i. Fresh issue is 23,255,813 shares, ii. Offer for sale is 5,400,000 shares.

Western Carriers (India) Limited IPO Details:

Open Date: Sep 13 2024
Close Date: Sep 18 2024
Total Shares: 28,655,813
Face Value: ₹ 5 Per Equity Share
Issue Size: 492.88 Cr.
Lot Size: 87 Shares
Issue Price: ₹ 163 - 172 Per Equity Share
Listing At: NSE,BSE
Listing Date: Sep 23 2024

Promoters And Management:

Rajendra Sethia, Chairman and Managing Director of the Company, holds a bachelor’s degree in mechanical engineering from the University of Gauhati. With over 50 years of experience in the logistics industry, he founded "Western Carriers" in 1972, which was later acquired by our Company in 2013. As one of the Promoters, he has been instrumental in providing strategic guidance since the company's inception. Kanishka Sethia is a Whole-time Director and the CEO of the Company, holding a bachelor’s degree in science and an MBA from Bentley College, Massachusetts. With around 20 years of experience in the logistics industry, he specializes in complex supply chain management. A Promoter of the Company since its inception, Kanishka has also served as Chairman of the National Expert Committee on Logistics and Supply Chain of the Indian Chamber of Commerce (ICC) since 2018. Sushila Sethia is a Whole-time Director of the Company. She attended Magadh University to pursue a bachelor’s degree in arts. She has been with the Company since its incorporation and is involved in identification and implementation of CSR projects. She has translated religious and philosophical books to Hindi.

Financials of Western Carriers (India) Limited IPO:

Particular (In Crore) Mar-24 Mar-23 Mar-22
Revenue from Operations 1,686 1,633 1,471
Operating Expenses 1437 1421 1280
Employee Cost 47 42 37
Other Expenses 56 48 49
EBITDA 146 122 105
EBIDTA Margin 8.66% 7.47% 7.14%
Other income 6 5 5
Depreciation 21 15 12
Interest 22 15 14
Profit before tax 108 96 83
Tax 28 24 22
Net profit 80 72 61
NPM (%) 4.73% 4.40% 4.13%
No. of Shares 10.19 10.19 10.19
EPS 7.85 7.07 5.99

Comparison With Peers:

Name of the Companies Revenue (Cr) Profit (Cr) EPS P/E CMP Mcap (cr)
Container Corporation of India Limited 8653 1262 20.69 45.5 951 57,894
Mahindra Logistics Limited 5506 -53 -7 -67 470 3394
TCI Express Limited 1254 134 34.35 34.2 1090 4188
Western Carriers (India) Limited 1686 80 7.85 21.91 172 1745
All the data is as per FY24

Recommendation on Western Carriers (India) Limited IPO:

1. Western Carriers (India) Limited operates on a scalable, asset-light business model that enables us to offer differentiated 3PL (Third-Party Logistics) and 4PL (Fourth-Party Logistics) solutions. 2. This model allows them to address complex logistics requirements by creating customized, one-stop, end-to-end, integrated logistics solutions for their clients. These solutions incorporate a variety of value-added services across the supply chain, making them a preferred partner for many industry leaders. 3. Customised Solutions and Value-Added Services They provide customized, one-stop 3PL and 4PL logistics solutions that meet the unique requirements of their customers. These solutions include a suite of value-added services such as inventory planning, warehouse management, cargo handling, customs clearance, and pre-shipment inspection. 4. Competitive Landscape The Indian road transportation industry is highly fragmented, with a large number of unorganized players due to low entry barriers and a high degree of commoditization. 5. The Revenue has Increased from Rs.1471 Crores in FY22 to Rs.1686 Crores in FY24. 6. The EBITDA has Increased from 105 Crores in FY22 to 146 Crores in FY24. 7. The PAT has Increased from 61 Crores in FY22 to 80 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.97, and EPS is 7.85, 9. Market Capitalization is 1,745 Crores and P/E is 21.91x based on FY24.

Lead Manager of Western Carriers (India) Limited IPO:

  1. JM Financial Consultants Private Limited
  2. Kotak Mahindra Capital Company Limited

Registrar of Western Carriers (India) Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Western Carriers (India) Limited 2/6 Sarat Bose Road 2nd Floor, Kolkata-700020 Phone: +91 33 2485 8519 Email: investors@westcong.com Website: https://western-carriers.com/

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