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Committed Cargo IPO, entails to raise ₹24.95 crore, is completely a fresh issue of 32,40,000 equity shares. Committed Cargo Care Limited is a Third Party Logistics provider that specializes in handling Import and Export Cargo and provides integrated services.

About Committed Cargo Care Ltd.

• It is a third party logistics company, Committed Cargo Care Limited specializes in managing import and export cargo and offers comprehensive services.
• Company started its operations as a Clearing House Agent. Committed Group has established its hub at Delhi, Mumbai, Chennai, Jaipur, Ludhiana, Agra and a reliable network of associate offices in India and world over and is also an accredited member of FIATA, The Air Cargo Agent Association of India (ACAAI) and International Air Transport Association (IATA).
• Company provides integrated logistics services such as cargo management solutions, order management, international freight management, customs and cross-border movement, heavy and over-dimensional cargo movement etc. Our well- established network and tracking software enables to provide fast and reliable information to our client. Thus, capable of handling – packaging, warehousing, freight forwarding, custom clearance of export and import cargo of commercial consignments, diplomatic and non-diplomatic consignments, special services and forwarding of cargos, with an objective to provide the most convenient and cost-effective transportation method by air, courier, sea and road any time & anywhere around the globe.
• 170 people are on its roll.

• Rajeev Sharma, Nitin Bharal, Narendra Singh Bisht, Yashpal Arora and Sonia Bharal are the Promoters.

Financials: Committed Cargo Care IPO

Committed Cargo Care IPO: Salient Points

• Promoters shareholding will drop from 98% to 69% post the IPO.
• The company plans to use the net proceeds from the offering to fund working capital requirements; and general corporate purposes.
• This is likely to give a boost to its revenues and profitability.
• Top 10 customers contribute approximately 46.99%, 46.79% and 54.76%of our revenues for financial year ended March 31, 2023, financial year ended March 31, 2022 and financial year ended March 31, 2021 respectively.
• Our cost of direct expenses to turnover ratio has been 81.36%, 85.45%, 88.01% and 88.16% for the period ended April 30, 2023, Financial Year ended March 31, 2023, Financial Year ended March 31, 2022 and Financial Year ended March 31, 2021 respectively.
• Company is regular is depositing undisputed statutory dues including GST, Provident Fund, Employee’s State Insurance, Income Tax, Sales Tax, Service Tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to appropriate authorities. There are some outstanding dues related to Income Tax and TDS amounting to Rs. 18.78 Lacs and Rs. 0.20 Lacs, respectively which are overdue for a period of more than six months from the due date.
• The company caters its services to a wide array of industries in India, including automotive and heavy engineering, telecom, food and agro, fast-moving consumer goods (FMCG), paint, handicrafts, e-commerce products, garments, pharmaceuticals, and dairy.
• It has customer base of 1500+ clients.
• 500+ customers are regular customers on a monthly basis. i.e. 30% of total customers. Thus many clients do regular and repeat business.
• Some special business verticals apart from general cargo are: lifesciences (infected samples), transporting pets, Human remains, exhibition cargo, Diplomatic cargo, e-commerce cargo.
• Revenue breakup:
  • customer brokerage 15% ( highest brokerage margin as entirely done by company)
  • frieght 52%
  • express 7%
  • rest others
• Some of its clients include UPS, Mandre Logistics, Accure Medical etc. Handles inbound and outbound flights of UPS.

• Peers:

• Committed Cargo Care IPO is coming at a PE ratio of 15.6x(fy23 earnings).
• Expects to grow 30% in coming years as per management. However revenue growth in past 3 years has been muted.
• I intend to apply in Committed Cargo Care IPO. Currently it is more like a north India regional player, but it plans to expand into West and South. It is in process of setting up of Hubs at Ahmedabad, Pune, Bengaluru and Cochin in next 6 months.
• GMP as reported on social media has been around Rs. 20
• Fedex Securities Pvt Ltd is the Lead Manager. Past issues handled by them have a mixed record and include Kundan Edifice Limited, Pramara Promotions Limited, Yasons Chemex Care Limited, Pattech Fitwell Tube Components Limited, Lead Reclaim and Rubber Products Limited, Tapi Fruit Processing Ltd, Virtuoso Optoelectronics Limited, Kesar India Limited.
• SME IPO are quite illiquid and volatile and exit options sometimes is delayed.
• There are reports that SEBI is of view that SME stocks prone to more market manipulation and SEBI may be looking to curb speculation in SME stocks.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.