August 23, 2023 / 01:46 PM IST
TVS Provide Chain Alternate choices made a lacklustre debut on the bourses on August 23, at a 5 percent top rate to its yell imprint of Rs 197. The stock listed at Rs 206.30 on the BSE and Rs 207.05 on the NSE.
Ahead of checklist, TVS Provide Chain Alternate choices became once commanding a gray market top rate (GMP) of gorgeous Rs 5 per fragment, indicating a flattish debut.
A extremely competitive industry, aggressive IPO pricing and losses reported within the past years are about a of the different causes that impacted checklist performance, experts stated.
The Rs 880-crore public yell of the logistics firm became once subscribed 2.78 instances within the direction of August 10-14, with bids for six.ninety nine crore fairness shares towards an IPO size of two.51 crore shares. Retail traders had been on the forefront, subscribing to 7.61 instances the dispensed quota.
Instruct our dwell weblog for the total market flow
TVS Provide Chain Alternate choices started operations as a fraction of the TVS community underneath the name TVS Logistics sooner than changing into a separate firm in 2004.
This day, TVS Provide Chain Alternate choices, or TVS SCS, as a world present chain firm, affords cease-to-cease choices to Fortune 500 companies at some stage within the enviornment. The enterprise is split into two main substances: Built-in Provide Chain Alternate choices and Community Alternate choices.
For the time being, TVS SCS has clientele in 26 international locations at some stage in Europe, Asia (collectively with India) and Australia.
The firm recorded revenue boost at a CAGR of 21.5 percent within the direction of FY21-FY23 to contact Rs 10,235 crore for FY23.
Also Learn: TVS Provide Chain Alternate choices IPO: Can the logistics main tower over peers?
Revenue stood at Rs 41.8 crore in FY23 towards an absence of Rs forty five.8 crore in FY22 and an absence of Rs 76.34 crore in FY21, with a PAT margin at 0.41 percent (towards -0.5 percent in FY22 and -1.1 percent in FY21).
TVS Provide Chain Alternate choices is accessible at a PE (imprint-to-earnings) of 209.43x on the FY23 foundation, which is costly in contrast to peers love TCI Particular (at 40.57x), Bluedart Particular (46.38x), even supposing by methodology of topline, TVS is remarkable bigger than peers. Then all all over again, it is much less pricey in contrast to Mahindra Logistics that has a P/E of 875x.
"Our advice: rob into anecdote promoting dispensed shares on checklist day. Likelihood-takers would possibly perchance well catch charge in TVS Provide Chain's asset-gentle strategy, world companies and products, and post-GST boost seemingly for organized logistics," Prashanth Tapse, Senior VP Learn Analyst at Mehta Equities stated.
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