Ecos (India) Mobility IPO: The good and the bad

Published: 27th Aug 2024

By: Value Research

The company

Ecos India Mobility (ECO Mobility) is India’s largest chauffeur-driven luxury car-rental provider, primarily catering to corporates and their high-end clients, employees, visitors etc. 

Total IPO size (Rs cr) 601 Offer for sale (Rs cr) 601 Fresh issue (Rs cr) - Price band (Rs) 318-334 Subscription dates August 28-August 30, 2024 Purpose of issue To benefit from public listing, enhance brand image

IPO details

M-cap (Rs cr) 2004 Net worth (Rs cr) 177.4 Promoter holding (%) 67.7 Price/earnings ratio (P/E) 32 Price/book ratio (P/B) 11.3

Post-IPO

Key financials 2Y CAGR (%) FY24 FY23 FY22 Revenue (Rs cr) 94 554 423 147 EBIT (Rs cr) 167 71 58 10 PAT (Rs cr) 151.3 63 44 10 Net worth (Rs cr) 57.4 177 115 72 Total debt 172.9 30 38 4

Financial history

EBIT is earnings before interest and taxes PAT is profit after tax

Key ratios 3Y average (%) FY24 FY23 FY22 ROE (%) 34.8 42.8 46.7 14.8 ROCE (%) 34.4 39.5 50.5 13.3 EBIT margin (%) 11.1 12.9 13.7 6.8 Debt-to-equity 0.2 0.2 0.3 0.1

Key ratios

ROE is return on equity ROCE is return on capital employed

The Good

The company has the highest operating margins compared to its listed peers, while having the largest fleet of over 12,900 vehicles. Over 90% of its operating vehicles are owned by different vendors. 

The Good

The company touts a prestigious client portfolio, including 42 Fortune 500 companies and 60 BSE 500 companies. 

The bad

The chauffeured car-rental market is highly fragmented and dominated by unorganised players, threatening the company’s market leadership. Our full story details these risks. Read it from the link below.

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