Tejas Cargo India IPO Review

Tejas Cargo India is a logistics company based in Faridabad, Haryana, providing long haul supply chain transportation services by road across India. They offer express supply chain transportation services by road under Full Truck Load (“FTL”), to a diverse range of companies who are inter alia engaged in the logistics, steel and cement, e-commerce, industrial & chemicals, FMCG and white goods sectors. Their services include shipment planning, route optimisation, fleet selection, documentation, tracking, communication and coordination and performance evaluation. 

The Promoter, Manish Bindal commenced his journey with a sole proprietorship firm titled ‘Trans Cargo India’ in the year 2009 to cater logistics needs of various industries. Chander Bindal, also assisted Manish Bindal in development of logistics network under the brand name of ‘Trans Cargo India’. The Chairman cum Managing Director, Chander Bindal and Whole Time Director and CEO, Manish Bindal, both have more than fourteen (14) years of industry experience.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 25,509.17 Lakh, ₹ 42,259.06 Lakh, ₹ 38,437.46 Lakh and ₹ 20,967.03 Lakh respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 4,556.20 Lakh, ₹ 6,903.16 Lakh, ₹ 3,282.31 Lakh, and ₹ 837.78 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ ₹ 874.50 Million, ₹ 1,322.22 Million, ₹ 985.85 Million, and ₹ 315.54 Million respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 2,206.83 and post-issue EPS of ₹ 5.53 for FY24. The pre-issue P/E ratio is 0.08x, while the post-issue P/E ratio is 30.36x against the Industry P/E ratio is 19x. The company's ROCE for FY24 is 28.30%, ROE for FY24 is 38.62% and RoNW 23.85%. The Annualised EPS based on the latest financial data is ₹ 13.62 and PE ratio is 12.33x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Tejas Cargo India showing listing gains of 0.00 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Tejas Cargo India 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.