Western Carriers (India) IPO Review

WESTERN CARRIERS (INDIA) is the largest private, multi-modal, rail focused, 4PL asset-light logistics company in India in terms of container volumes handled/operated by private players in Fiscal 2023. They have several years of experience in road, rail and sea / river multi-modal movement for domestic as well as EXIM cargo in and out of India. 

The Company's Promoter, Rajendra Sethia, established his logistics business as a rail-focused logistics business in 1972, which was later acquired by the Company in 2013. Over the last 50 years, the business has continued to evolve to provide end-to-end, customised, multi-modal logistics solutions across the supply chain integrating road, railway, water and air logistics along with a customised suite of value-added services.

Financially, Western Carriers (India) revenue increased from ₹14,757.89 Millions in FY22 to ₹16,378.40 Millions in FY23 and currently at ₹16,914.10 Millions in FY24. Similarly, EBITDA increased from from ₹1,088.87 Millions in FY22 to ₹1,264.49 Millions in FY23 and currently at ₹1,518.24 Millions in FY24. The PAT increased from ₹611.29 Millions in FY22 to ₹715.65 Millions in FY23 and currently at ₹803.47 Millions in FY24. This indicates a steady financial performance.

For the Western Carriers (India) IPO, the company is issuing shares at a pre-issue EPS of ₹10.21 and a post-issue EPS of ₹7.88. The pre-issue P/E ratio is 16.84x, while the post-issue P/E ratio is 21.82x against Industry P/E ratio is 32.51x. The company's ROCE for FY24 is 29.23% and ROE for FY24 is 22.41%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Western Carriers showing potential listing gains of 32% - 35%. Given the company's financial performance and the valuation of the IPO, we recommend only Risky Investors to Apply to the Western Carriers (India) Limited IPO for Listing gain or long term investment purposes.

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.
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