BLT Logi BSE SME IPO review

•    The company is engaged in providing surface transportation of goods and warehousing services.
•    The company marked growth in its top and bottom lines.
•    It is operating in a highly competitive and fragmented segment.
•    Based on its recent financial data, the issue appears fully priced. 
•    Well-informed investors may park moderate funds for long term.

ABOUT COMPANY:
BLT Logistics Ltd. (BLL) is engaged in providing surface transportation of goods in containerized trucks and warehousing services to various industries and businesses. Its logistics operations are supported by own fleets of containerized trucks and hired from its 99.99% subsidiary, Sabarmati Express India Private Limited (“Sabarmati”) and third-party operators i.e., small fleet owners and agents who provide it with necessary transportation facilities such as containerized trucks. As on March 31, 2025, it owned operational fleet of 106 vehicles having capacity ranging from 3.5MT to 18MT in the name of the Company and 15 vehicles as part of the fleet of its 99.99% subsidiary, Sabarmati, having capacity of 9MT. BLL mainly serves B2B customers which require transporting bulk quantities of their goods from one place to another within India. The company has gradually developed the business and increased the ambit of its Transportation & Allied Services which includes other services like packing and moving and transportation of project cargo. 

BLL has started end-to-end warehousing solutions to add to its repertoire of offerings. The company has a 99.99% subsidiary company namely Sabarmati Express India Private Limited (“Sabarmati”) which is engaged in the business of providing transportation and logistics services mainly in the B2C segment i.e., distribution of goods to customer of client. Sabarmati also provides its fleet of vehicles for its transportation & allied services on hire basis from its owned fleets of vehicles as well as it hires from small and unorganized third-party operators. Its subsidiary company owns 15 of the carrier/vehicles as on March 31, 2025. Consolidated number of vehicles of the company with the subsidiary company is 121 as on March 31, 2025. It provides logistics services via roadways and also have warehouses in Thane, Gurugram, Hooghly, Ambala and Bengaluru apart from its office in Delhi. BLL’s clientele stands at more than 200 in Financial Year 2024-25 and it serves to a diverse mix of clients engaged in electronics, retail, food and confectionery, wholesale traders and other MNCs.

Currently, positioned as a Second-Party Logistics (2PL) provider, the company is strategically evolving into a Third-Party Logistics (3PL) provider. This expansion encompasses the integration of warehousing services into its transportation service, broadening capabilities to address a wider range of client needs. While its current service offerings focus on specific segments of the supply chain, its transition to a 3PL model will enable the company to deliver comprehensive, integrated logistics solutions and streamlining operations for clients.

The fleet operates across the country ensuring nation-wide services to its corporate and individual customers. BLL’s trucks have national permits with Haryana, Nagaland, Delhi and Maharashtra passing. As of March 31, 2025, it had 62 employees on its payroll. It also hires contract workers as and when required.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 1296000 equity shares to mobilize Rs. 9.72 cr. at the upper cap. It has announced a price band of Rs. 71 – Rs. 75 for share of Rs. 10 each. The IPO opens for subscription on August 04, 2025, and will close on August 06, 2025. The minimum application to be made is for 3200 shares and in multiple of 1600 shares thereon, thereafter. Post allotment, shares will be listed on BSE SME. The issue constitutes 27.02% of post-IPO paid-up equity capital of the company. From the net proceeds of the issue, the company will utilize Rs. 3.88 cr. for capex on purchase of trucks and ancillary equipment, Rs. 2.80 cr. for working capital, and the rest for general corporate purposes.

The IPO is solely lead managed by Beeline Capital Advisors Pvt. Ltd., while Skyline Financial Services Pvt. Ltd. is the registrar to the issue. BEELINE group’s Spread X Securities Pvt. Ltd. is the market maker, as well as a syndicate member. 

After issuing initial equity shares at par, the company issued bonus shares in the ratio of 6 for 1 in February 2024. The average cost of acquisition of shares by the promoters is Rs. NIL per share.

Post-IPO, company’s current paid-up equity capital of Rs. 3.50 cr. will stand enhanced to Rs. 4.80 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 35.97 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted a total income/net profit of Rs. 40.73 cr. / Rs. 3.13 cr. (FY24), Rs. 49.43 cr. / Rs. 3.84 cr. (FY25). 

On standalone basis, for the last three fiscals, the company has posted total revenue/net profit of Rs. 31.72 cr. / Rs. 1.36 cr. (FY23), Rs. 40.04 cr. / Rs. 2.65 cr. (FY24), and Rs. 48.19 cr. / Rs. 3.00 cr. (FY25). 

For the last three fiscals, the company has reported an average EPS of Rs. 11.84 (standalone basis), and an average RoNW of 53.22%. The issue is priced at a P/BV of 3.44 based on its NAV of Rs. 21.78 as of March 31, 2025, but its post-IPO NAV data is missing from the offer documents.

If we attribute its FY25 (consolidated) super earnings on post-IPO expanded equity base, then the asking price is at a P/E of 9.38, and based on its FY24 earnings, the P/E stands at 11.49. Thus, based on its recent financial data, the issue appears fully priced.

The company has (on a standalone basis) reported PAT margins of 4.37% (FY23), 6.67% (FY24), 6.27% (FY25), and RoCE margins of 22.23%, 35.29%, 27.66%, respectively for the referred periods.

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performances and future prospects.

COMPARISON WITH LISTED PEERS:
As per offer document, the company has shown Premier Roadlines, Coastal Roadways, as their listed peer. They are trading at a P/E of around 13.2, and 11.2 (as of July 31, 2025). However, they are not truly comparable on an apple-to-apple basis.

MERCHANT BANKER’S TRACK RECORDS:
This is the 64th mandate from Beeline Capital in the last four fiscals (including the ongoing one). From the last 13 listings, all opened with premium ranging from 0.55% to 146.91% on the date of listing.