Brace Port Logistics Limited IPO Review
Company Overview:
Incorporated in November 2020, Brace Port Logistics Limited is a dynamic company specializing in ocean cargo logistics services. Their service portfolio extends to air freight, warehousing facilities, special cargo services (including handling and delivering cargo internationally), and customs clearance. With a strong network, the company serves various industries such as medical supplies, pharmaceuticals, sports goods, perishables, electronics, consumer durables, and automotive both in India and globally. The company operates in countries including Germany, Vietnam, UAE, Hong Kong, and Bangladesh.
Certifications and Workforce:
Brace Port Logistics Limited is certified for Quality Management Systems (ISO 9001:2015), Environmental Management System (ISO 14001:2015), and Occupational Health and Safety Management System (ISO 45001:2015). As of August 31, 2023, the company employed 20 people across departments such as Accounts & Finance, Compliance, Maintenance, Marketing & Logistics, Production & Operations, Quality, Top-Level Management, and Permanent Labor.
Financial Performance:
Brace Port Logistics Limited has shown a mixed financial performance. Between the financial years ending March 31, 2023, and March 31, 2024, the company’s revenue decreased by 22%, and its profit after tax (PAT) dropped by 21%. However, the company’s assets and net worth have increased, reflecting an expansion in its financial base.
Key Financial Data (₹ Lakhs):
Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
Assets | 2,783.29 | 1,310.78 | 1,179.14 | 409.61 |
Revenue | 5,524.59 | 7,093.66 | 5,419.57 | 706.25 |
PAT | 489.13 | 618.09 | 322.39 | 22.57 |
Net Worth | 1,377.18 | 888.05 | 419.96 | 97.57 |
Reserves | 552.18 | 813.05 | 344.96 | 22.57 |
Borrowing | 48.97 | 59.10 | 65.62 | – |
Key Performance Indicators (KPIs) as of March 31, 2024:
Market Capitalization:
₹90.41 Crores
ROE: 43.19%
ROCE: 47.05%
Debt/Equity: 0.04
RoNW: 35.52%
P/BV: 4.79
PAT Margin: 8.89%
Earnings Per Share (EPS):
Pre IPO EPS: ₹5.93
Post IPO EPS: ₹4.33
The Pre IPO EPS is calculated based on the pre-issue shareholding as on the date of the RHP and the latest FY earnings as of March 31, 2024. The Post Issue EPS is calculated based on the post-issue shareholding and annualized FY earnings as of March 31, 2024.
Objects of the Issue:
The company intends to use the net proceeds from the IPO for the following purposes:
Funding the working capital requirements of the company.
General corporate purposes.
This IPO is positioned as a strategic move for Brace Port Logistics Limited, enabling it to strengthen its financials and expand its operational capabilities