Western Carriers (India) Limited is a Multi-modal, rail-focused, 4PL asset-light logistics company. They offer fully customizable, multi-modal logistics solutions encompassing road, rail, water, and air transportation and tailored range of value-added services.
| IPO opens | September 13, 2024 |
| IPO Closes | September 18, 2024 |
| IPO Size (Rs.) | ₹492.88 Cr |
| Breakup | Fresh issue ₹400.00 Cr + OFS ₹92.88 Cr |
| Face Value: | ₹ 5 |
| IPO Price in Rs : | ₹163 to ₹172 per share |
| Minimum Lot | 87 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~50 % |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| BRLM | Motilal Oswal Investment Advisors, Nuvama Wealth Management, BOB Capital Markets |
| Registrar | Bigshare |
About Western Carriers (India) Limited:
- The company was incorporated as ‘Western Carriers (India) Pvt. Ltd’ at Kolkata, in 2011.
- Western Carriers (India) is the largest private, multi-modal, rail focused, 4PL asset-light logistics company in India in terms of container volumes handled by private players in FY2023.
- The company provides end-to-end, customized, multi-modal logistics solutions across the supply chain integrating road, railway, water and air logistics along with a customized suite of value-added services.
- Their Services
- Single Window Logistics
- Multimodal Transportation
- Rail Transport
- Road Transport
- Cargo Handling Services
- Custom House Agency
- Ocean and Air Freight
- Warehouse/Redistribution centres
Financials : Western Carriers (India) IPO
| Particulars / Rs. Cr | 2024 | 2023 | 2022 |
| Revenue from Operations | 1,685.77 | 1,633.06 | 1,470.88 |
| Revenue Growth (%) | 3.23 | 11.03 | 32.5 |
| EBITDA | 151.82 | 126.45 | 108.89 |
| EBITDA Margin (%) | 9.01 | 7.74 | 7.4 |
| Net Profit | 80.35 | 71.57 | 61.13 |
| Net Profit (%) | 4.77 | 4.38 | 4.16 |
| Share Capital | 39.35 | 39.35 | 39.35 |
| Net Worth | 398.36 | 318.61 | 257.58 |
| Total Borrowings | 266 | 210.47 | 150.4 |
| RONW (%) | 20.17 | 22.46 | 23.73 |
| NAV (₹) | 50.62 | 40.48 | 32.73 |
| ROE (%) | 22.41 | 24.84 | 26.92 |
| ROCE (%) | 29.23 | 29.71 | 33.4 |
| Post issue Share Capital | 50.98 | ||
| FV | 5.0 | ||
| IPO price | 172.0 | ||
| EPS Fy234 | 7.9 | ||
| PE | 21.8 | ||
| Market cap in cr. | 1,754 | ||
| Market cap / Sales | 1.04 |
Anchor: Western Carriers (India) IPO
Salient Points: Western Carriers (India) IPO
- Rs. 93 cr is OFS by the promoter with their 100% stake to drop down to 72%.
- Rs. 400 cr Fresh Issue proceeds Rs. 164 cr will go for debt repayment and Rs. 152 cr capex, over 3 years.
- Government of India policies around Dedicated Freight Corridor and Multi-Modal Logistics Parks, may benefit for Western Carriers.
- Turmoil in Bangladesh may lead to loss of some business.
- Company is one of the largest platinum business associates of CONCOR in terms of railway twenty-foot equivalent units (“TEUs”) providing ~ 6% of the domestic railway TEUs to CONCOR in FY2024.
- Further company is the largest associate partner of CONCOR in terms of railway TEUs providing 4% of the export-import market railway TEUs to CONCOR in FY2024.
- P/E ratio stands at ~ 21x.
- Listed Peers:
| Company/ FY24 figures | CMP Rs. | Revenue Rs. Cr | Net Profit Rs. Cr | NPM (%) | PE | Macp/sales | RONW % |
| Western Carriers (India) | 172.0 | 1,685.77 | 80.35 | 4.8% | 21.8 | 1.04 | 20.17 |
| Container Corporation of India Limited | 961 | 8,653.41 | 1262 | 14.6% | 46 | 6.63 | 10.42 |
| Mahindra Logistics Limited | 469 | 5,505.97 | -53 | -1.0% | — | 0.6 | -10.33 |
| TCI Express Limited | 1,084 | 1,253.82 | 132 | 10.5% | 34 | 3.35 | 18.71 |
- Volumes increased last year.
- They are one of the national logistics companies to hold custom house agency licenses in our own name with most major ports in India.
- The company is active in all major ports of India, including the Jawaharlal Nehru Port Trust, the Vizag Port Trust and the Gangavaram Port.
- Better operation performance expected after debt reduction post the IPO.
- There are some cases against the Promoters.
- I intend to apply in Western Carriers (India) IPO. An asset light business model and valuations are not too streched.
- GMP as reported on social media has been Rs.. 57 (33%).
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared 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.