Jayesh Logistics NSE SME IPO review

•    The company is a service provider in the logistics and supply chain management segments.
•    The company marked growth in its top and bottom lines for the reported periods.
•    The quantum jumps in bottom lines from FY24 onwards amidst rising competition is a bit surprising.
•    Based on its recent financial data, the issue appears fully priced.
•    Well-informed/ risk savvy / cash surplus investors may park moderate funds for medium term.

ABOUT COMPANY:
Jayesh Logistics Ltd. (JLL) is a service provider in the logistics and supply chain management industry, primarily providing freight services using road transportation like trucks and railways and non-freight services; like loading and unloading, truck on hire also known as Truck Forwarding Note “TFN”, custom clearance, and machinery on hire, to over 200 clients from various industries such as iron and steel, infrastructure equipment, cement, heavy industrial machinery, engineering, construction machinery and more.

The Company handles both domestic and cross-border consignments. It also provides non-freight support which enables it to address various supply chain requirements of clients and provide them with end-to-end solutions. It is an ISO 9001:2015 and ISO 14001:2015 certified company, which emphasizes quality management systems and environmental management respectively. It has been awarded with various awards as a road transport operator.

Company's operations are supported by an in-house fleet of 95 heavy material and cargo handling trucks as on the date of filing of this Red Herring Prospectus. Having owned trucks ensures better control over transportation services and reliability in cargo handling. Its fleet encompasses trucks with various types of design, size, and capacity. The diversity of fleet of vehicles allows it to cater to a wide range of consignments. To cater to this wide range of consignments and excessive demand during a particular season, it also connects and use third-party truck operators to utilize their vehicles on a need basis.

Its fleet operators (Drivers) are hired through a network of agents. Its agents have a huge network of drivers where availability is not a constraint, this helps it to ensure higher utilization of fleet and provide uninterrupted services wherein the company does not have to worry about availability of these operators (drivers). Dominant routes that it operates is in Eastern India, managing movement of cargo from Kolkata and Haldia port to the hinterland. The company holds a decade long experience on inland movement capabilities across Indo-Nepal Logistics corridor specialising in Cross-Border and Nepal hinterland logistics operations. It is one of the players in Eastern India when it comes to road transportation across Nepal and have been accredited with Transporter of the Year awards and accolades at the Nepal Cargo Conferences hosted by EXIM India Shipping Times at the Eastern Star Awards in the years 2019, 2020, 2023, 2024 and 2025. Operating on these routes require experienced drivers and a trained operations team, ensuring smooth cross-border operations and customs clearances.

The use of advanced technology and data analytics is an utmost requirement of any businesses to operate in today’s world and the Company recognizes this need as a core aspect for the future growth. To achieve this JLL is in the process of developing a customized software by the name of “SMART-SYS”. This software is a comprehensive, modular logistics IT solution being developed by it along with technology vendor to optimize operational efficiency, enhance visibility, and improve customer service. Integrating systems such as ERP, fleet tracking (GPS/RFID), blockchain-enabled and AI-driven CRM, SMART-SYS eliminates manual inefficiencies while enabling real-time data tracking and process automation. As of September 30, 2025, it had 43 employees on its payroll. 

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building IPO of 2347000 equity shares of Rs. 10 each to mobilize Rs. 28.63 cr. (at the upper price band). It has announced a price band of Rs. 116 – Rs. 122 per share of Rs. 10 each. The IPO opens for subscription on October 27, 2025, and will close on October 29, 2025. The minimum application to be made is for 2000 shares and in multiple of 1000 shares thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 27.00% of post-IPO paid-up equity capital of the company. From the net proceeds of the issue, the company will utilize Rs. 8.85 cr. for capex on purchase of side wall trailers, Rs. 11.24 cr. for working capital, Rs. 0.72 cr. for funding phase 2 of smart logistics application, and the rest for general corporate purposes

The IPO is solely lead managed by Indcap Advisors Pvt. Ltd., while KFin Technologies Ltd., is the registrar to the issue. Giriraj Stock Broking Pvt. Ltd., is the market maker. Intellect Stock Broking Ltd. is a sub-syndicate member. This IPO is underwritten to the tune of 15% by Indcap Advisors and 85% by Giriraj Stock Broking. 

After issuing initial equity shares at par value, the company issued further equity shares in the price range of Rs. 53.50 – Rs. 137.00 per share between March 2017 – February 2025. It has also issued bonus shares in the ratio of 11 for 1 in April 2020, and 10 for 1 in December 2024. The average cost of acquisition of shares by the promoters is Rs. 0.57, Rs. 0.73, Rs. 0.80, Rs. 4.86, and Rs. 7.91 per share.

Post-IPO, company’s current paid-up equity capital of Rs. 6.34 cr. will stand enhanced to Rs. 8.69 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 106.04 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total revenue/Net Profit of Rs. 60.37 cr. / Rs. 1.09 cr. (FY23), Rs. 88.30 cr. / Rs. 3.16 cr. (FY24), and Rs. 112.03 cr. / Rs. 7.20 cr. (FY25). For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 2.02 cr. on a total revenue of Rs. 25.25 cr. The company marked growth in its top and bottom lines for the last three fiscals. However, muted top line with boosted bottom line for Q1 of FY26 raise eyebrows and bit surprises as it is operating in a highly competitive and fragmented segment, Of-late we are witnessing glut of logistics players indicating it’s a high time for becoming very choosy for primary market investment. Higher level with increasing trade receivables raises major alarm.

For the last three fiscals, the company has reported an average EPS of Rs. 7.79, and an average RoNW of 48.97%. The issue is priced at a P/BV of 4.00 based on its NAV of Rs. 30.51 as of June 30, 2025, but post-IPO NAV data is missing from offer documents.

If we attribute its FY26 super annualized earnings on post-IPO expanded equity base, then the asking price is at a P/E of 13.13, and based on its FY25 earnings, the P/E stands at 14.73. Thus, based on its recent financial data, the issue appears fully priced.

The company has posted PAT margins of 1.81% (FY23), 3.58% (FY24), 6.43% (FY25), 8.01 (Q1-FY26) and RoCE Margins of 16.93%, 18.09%, 27.23%, 7.01% respectively for the referred periods. 

DIVIDEND POLICY:
The company has not declared any dividends since incorporation. 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 Ritco Logistics, AVG Logi., SJ Logistics, as its listed peers. They are currently trading at a P/E of around 14.7, 15.9, and 9.87 (as of October 21 2025).  However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash.

MERCHANT BANKER’S TRACK RECORDS:
This is the 2nd mandate from Indcap Advisors in the last two fiscals (including the ongoing one). Out of the only listing so far, it opened at discount, and thus the lead manager has a poor track record.