Afcom Holdings IPO Review

AFCOM HOLDINGS Limited, a professionally managed International Cargo airline that began its business in Chennai. It was founded by industry professionals who have notable experience in building successful businesses and partnering with industry leaders in promising areas of Defence, IT, Financial Services, Real Estate and Aviation.

The Company is led by Promoters, Capt. Deepak Parasuraman and Wg. Cdr. Jaganmohan Mathena (Retd) both have over three decades of experience in the aviation industry.

Financially, Afcom Holdings revenue increased from ₹1,388.72 Lakhs in FY21 to ₹4,866.97 Lakhs in FY22 and further increased to ₹8,490.12 in FY23 and currently increased at ₹13,416.38 Lakhs in 11MFY24. Similarly, EBITDA also increased from ₹-598.23 Lakhs in FY21 to ₹991.39 Lakhs in FY22 and further to ₹1915.34 in FY23 and currently increased at ₹3,299.55 Lakhs in 11MFY24. The PAT also increased from ₹-420.31 Lakhs in FY21 to ₹514.80 Lakhs in FY22 and further to ₹1,358.62 in FY23 and currently at ₹2,310.37 Lakhs in 11MFY24. This indicates a steady financial performance.

For the Afcom IPO, the company is issuing shares at a pre-issue EPS of ₹7.94 and a post-issue EPS of ₹5.46. The pre-issue P/E ratio is 13.60x, while the post-issue P/E ratio is 19.78x against the Logistics industry P/E ratio of 38x. The company's ROCE for 11MFY24 is 34.63% and ROE for 11MFY24 is 26.53%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Afcom indicates potential listing gains of 70% to 75%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply Afcom IPO for Listing gain purposes or Long Term Investment Purposes.