Western Carriers (India) IPO Opens Today: Pros & Cons

Published: 13th Sep 2024 By: Value Research

About the company

[{"selector":"#anim-19d22532-4ed5-4f56-a1ea-446451ba128e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c3e4603b-8a4c-43c3-98c2-c0953c8fb669","keyframes":{"transform":["translate3d(-114.73355%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f983a53b-8ce6-4247-9d0b-bf0009345c5d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5f6bd753-0899-489a-8c84-784300ad6322","keyframes":{"transform":["translate3d(-115.65495%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Western Carriers (India) is a railway-focused B2B logistics company that offers rail transport, road transport, warehousing and stock management for bulk goods. It has 1,600 customers, including marquee names like HUL and Tata Steel.

IPO details

[{"selector":"#anim-7e29f90a-58b2-4d31-b433-718cd7a8bf0e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6f8081f1-ea50-4659-89ce-d6515ddb23d4","keyframes":{"transform":["translate3d(0px, 361.11090%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Total IPO size (Rs cr) 493 Offer for sale (Rs cr) 93 Fresh issue (Rs cr) 400 Price band (Rs) 163-172 Subscription dates September 13-18, 2024 Purpose of issue Funding capex, repayment of borrowings and offer for sale

Post-IPO

[{"selector":"#anim-83846cdd-7037-48d7-bd38-f3dd87b0c68b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-16f25879-726a-4953-af89-a372195fb91b","keyframes":{"transform":["translate3d(0px, 590.64412%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 1754 Net worth (Rs cr) 798 Promoter holding (%) 71.9 Price/earnings ratio (P/E) 21.8 Price/book ratio (P/B) 2.2M-cap (Rs cr)

Most useful investment tools

Best Mutual Funds Fund Screener Stock Screener SIP Calculator

Financial history

[{"selector":"#anim-bfc6d9fc-5b87-4993-8652-7933b56a422c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3620b2d2-e691-43f0-b5d7-53f5d52cb519","keyframes":{"transform":["translate3d(0px, 579.36562%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 2Y growth (% pa) FY24 FY23 FY22 Revenue (Rs cr) 7.1 1686 1633 1471 EBIT (Rs cr) 16.2 125 106 92 PAT (Rs cr) 14.6 80 72 61 Net worth (Rs cr) 398 319 258 Total debt (Rs cr) 269 215 155Key financials

Key ratios

[{"selector":"#anim-5a31f435-f712-4acb-b5b8-178f5efee572","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5ff844cb-7aff-466c-9b20-6d0462a04186","keyframes":{"transform":["translate3d(0px, 625.79424%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Ratios 3Y average (%) FY24 FY23 FY22 ROE (%) 24.7 22.4 24.8 26.9 ROCE (%) 30.8 29.2 29.7 33.4 EBIT margin (%) 6.7 7.4 6.5 6.3 Debt-to-equity 0.65 0.7 0.7 0.6

The pros

[{"selector":"#anim-55cc7270-7abe-4427-8b6c-064d6f1e43f7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-356737a4-b0a3-45e3-b53e-443b820e8a1f","keyframes":{"transform":["translate3d(0px, 159.86215%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Western Carriers (India) has decades-long relationships with seven of its top 10 customers. Additionally, growth in e-commerce and government support for transportation infrastructure will help the company scale its business.

The cons

[{"selector":"#anim-dc82289f-74cd-416f-b426-f74396ff0264","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9d15bb38-e689-4685-a0ba-de927a271d6e","keyframes":{"transform":["translate3d(0px, 194.74590%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The company operates in a commoditised industry with low entry barriers. Further, it has a high dependence on a cyclical sector. For our in-depth risk report, click the link below: Western Carriers (India) IPO analysis

Other Webstories

[{"selector":"#anim-5848ddcf-fb01-4496-b552-a9cdb502be21","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e36cdb6c-5118-478e-b714-4ed27109ce7c","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-511686c7-bec9-4f7e-b4f2-28e282764933","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a05807b2-4cc5-4be7-a66d-0af54c88cfdc","keyframes":{"opacity":[0,1]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-be0a09ec-cd24-4a22-98a3-2252712e91b8","keyframes":{"transform":["translate3d(-194.52735%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-70989c49-0d3b-4ffa-8ae9-cecd655fd31f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3480f030-94d2-497a-bdc7-fc1f2862883c","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Click Here