Shreeji Shipping Global IPO: The good and the bad

Summary: Thinking of applying for the Shreeji Shipping Global IPO? The shipping and logistics player has delivered consistent profitability with strong return ratios. However, weak revenues and other risks warrant closer scrutiny. Find them in the story below. Shreeji Shipping Global IPO, raising Rs 411 crore via a fresh issue, will open for subscription on August 19, 2025 and close on August 21, 2025. We bring you a quick breakdown of the shipping and logistics company’s business, its past track record and key strengths and weaknesses to help you make an informed investing decision. What the company does Shreeji Shipping Global is an integrated shipping and logistics company specialising in handling dry bulk cargo (coal, grain, cement and ores) at ports and jetties in India and Sri Lanka. The company operates a fleet of over 80 vessels, including barges, mini bulk carriers, tugboats and floating cranes, along with over 370 cargo-handling and earthmoving machines. Its network covers major ports like Kandla and others along India’s west coast like Navlakhi, Magdalla, Bhavnagar, Bedi and Dharmatar, plus Sri Lanka’s Puttalam Port. In FY25, it handled 15.71 million metric tonnes (mmts) of cargo. By bundling end-to-end logistics solutions from loading to delivery under one roof, Shreeji removes the need for multiple service providers. Its customers span oil and gas, energy, FMCG, coal and metals industries. Past track record and valuation Shreeji Shipping Global’s performance over the past three years shows steady operating profitability but a declining revenue trend due to demand slowdown for cargo services on routes, like the Middle East to India, where it operates. Between FY23 and FY25, revenue declined 14 per cent annually while net profit rose 9 per cent per annum, supported by improving margins. The company’s return ratios are robust, with an average ROE of 44 per cent and ROCE of 37 per cent over the last three years, reflecting efficient capital use. The balance sheet remains moderate on leverage, with a debt-to-equity ratio of 0.7 as of FY25. At the upper end of the price band of Rs 252, the company is valued at a P/E of 29 times and P/B of 5.4 times. For comparison, listed peers trade at a median P/E of 8 times and average P/B of 1 times. Shreeji