GB Logistics Commerce IPO Review

GB Logistics Commerce Limited operates across two main business verticals: logistics and trading of agricultural commodities. The company provides full truckload freight services for large and medium-sized enterprises, utilizing both proprietary and thirdparty transportation services to manage logistics. Their offerings include regular full-truckload transportation, special handling, go down-to-go down transportation, delivery above ground floor, and handling out-of-delivery area shipments. 

Prashant Natwarlal Lakhani, the Managing Director of GB Logistics Commerce Limited, is a seasoned professional with a rich history in the courier and cargo industry. His journey commenced in 1991 when he entered the Courier Business, acquiring the agency of On dot courier and cargo Limited. Over the years, he strategically bolstered the business by managing the franchisee of Track on Couriers Private Limited in 2002. In 2001, he founded Aditi Cargo Movers, and in 2010, he founded Express Cargo India Private Limited. With an extensive background and entrepreneurial spirit, Prashant Natwarlal Lakhani has been currently steering GB Logistics Commerce Limited as its Managing Director.

The Revenues from operations for the period ended on Sep 30, 2024 and Fiscals ended 2024 were ₹ 5,085.30 Lakh and ₹ 11,563.31 Lakh, respectively. The EBITDA for the period ended on Sep 30, 2024 and Fiscals ended 2024 were ₹ 444.03 Lakh and ₹ 847.61 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024 and Fiscals ended 2024 were ₹ 252.80 Lakh and ₹ 486.24 Lakh, respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 9.67 and post-issue EPS of ₹ 5.93 for FY24. The pre-issue P/E ratio is 10.55x, while the post-issue P/E ratio is 17.19x against the Industry P/E ratio is 79x. The company's ROCE for FY24 is 14.51%, ROE for FY24 is 27.36% and RoNW 27.36%. The Annualised EPS based on the latest financial data is ₹ 8.82 and PE ratio is 11.56x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of GB Logistics Commerce showing potential listing gains of 0.00%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the GB Logistics Commerce Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

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.