Ashapura Logistics IPO Review

Ashapura Logistics is an integrated logistics company in India, primarily operating in (i) Cargo handling and freight forwarding segment; (ii) Transportation (including project logistics and third-party logistics (“3PL”)); Warehousing (iii) and Distribution and (iv) other services (including coastal movement). They have pan-India operations through their network of 9 (Nine) branch offices as at the Date of Red Herring Prospectus. 

The company is benefited from the extensive experience of their promoter Mr. Sujith Chandrasekhar Kurup, who is associated with their company since its incorporation and having experience of more than 25 (Twenty-Five) years in the Logistic Industry.

 Financially, Ashapura Logistics revenue decreased from ₹22,713.84 Lakhs in FY22 to ₹22,260.31 Lakhs in FY23 and currently at ₹19,934.57 Lakhs in FY24. EBITDA increased from ₹2,091.93 Lakhs in FY22 to ₹2,217.10 Lakhs in FY23 and currently increased at ₹2,621.18 Lakhs in FY24. The PAT also increased from ₹788.26 Lakhs in FY22 to ₹946.98 Lakhs in FY23 and currently increased at ₹1,235.44 Lakhs in FY24. This indicates a steady financial performance.

For the Ashapura Logistics IPO, the company is issuing shares at a pre-issue EPS of ₹12.48 and a post-issue EPS of ₹9.11. The pre-issue P/E ratio is 11.53x, while the post-issue P/E ratio is 15.80x against the industry P/E ratio of 22.62x. The company's ROCE for FY24 is 20.69% and ROE for FY24 is 21.82%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Ashapura Logistics indicates potential listing gains of 50% to 55%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply the Ashapura Logistics Limited IPO for Listing gain or long term investment purposes.