Ecos (India) Mobility & Hospitality IPO Review

Ecos (India) Mobility & Hospitality is primarily engaged in the business of providing chauffeured car rentals (“CCR”) and employee transportation services (“ETS”) and have been providing these services to corporate customers, including Fortune 500 companies in India, for more than 25 years.

The Promoters, Rajesh Loomba and Aditya Loomba have a combined experience of more than 50 years in the chauffeur driven mobility provider industry.

Financially, Ecos Mobility revenue jumped from ₹1,515.54 Millions in FY22 to ₹4,254.29 Millions in FY23 and currently jumped to ₹5,682.05 Millions in FY24. Similarly, EBITDA also increased from ₹180.51 Millions in FY22 to ₹697.27 Millions in FY23 and currently jumped to ₹899.63 Millions in FY24. The PAT increased from ₹98.71 Millions in FY22 to ₹435.61 Millions in FY23 and currently jumped to ₹622.87 Millions in FY24. This indicates a steady financial performance.

For the Ecos Mobility IPO, the company is issuing shares at a pre-issue EPS of ₹10.45 and a post-issue EPS of ₹10.45. The pre-issue P/E ratio is 32.05x, while the post-issue P/E ratio is 32.05x against the industry P/E ratio of 31.85x. The company's ROCE for FY24 is 42.88% and ROE for FY24 is 42.75%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Ecos Mobility indicates potential listing gains of 30% - 35%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply the Ecos (India) Mobility & Hospitality Limited IPO for Listing gain or long term investment purposes.