Deccan Transcon Leasing provides end-to-end solutions for freight & shipping services which include domestic logistic of tank containers, Tank fleet management solution, custom clearance and transportation, Non-Vessel Operating Common Carriers (“NVOCC”) services. They are primarily engaged in providing tank containers on lease and logistic & supply chain solutions to clients in various sectors.
The Company's Promoters Karthika Menon, Jaidev Menon Parath and Miriyala Shekhar have wide experience in shipping and logistics industry. In recent years, they have diversified their operations to include box container and Flexi bags. As on May 31, 2024, their fleet size is more than 2500 tank containers and 750 TEUs of box containers.
Financially, Deccan Transcon Leasing revenue increased from ₹15,319.40 Lakhs in FY22 to ₹18,061.76 Lakhs in FY23 and currently at ₹15,363.76 Lakhs in FY24. Similarly, EBITDA increased from ₹881.44 Lakhs in FY22 to ₹1,280.76 Lakhs in FY23 and currently at ₹1,901.65 Lakhs in FY24. The PAT also increased from ₹519.10 Lakhs in FY22 to ₹855.70 Lakhs in FY23 and currently at ₹1,181.89 Lakhs in FY24. This indicates a steady financial performance.
For the Deccan Transcon Leasing IPO, the company is issuing shares at a pre-issue EPS of ₹6.87 and a post-issue EPS of ₹5.20. The pre-issue P/E ratio is 15.72x, while the post-issue P/E ratio is 20.76x against Industry P/E ratio is 23.33x. The company's ROCE for FY24 is 41.43% and ROE for FY24 is 45.03%. These metrics suggest that the IPO is fairly priced.
The Grey Market Premium (GMP) of Deccan Transcon Leasing listing gains of 45% - 50%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Deccan Transcon Leasing Limited IPO for Listing gain or long term investment purposes.
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About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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