Review By on July 19, 2017
Total Transport Systems Ltd (TTSL) is engaged in providing services for Deconsolidation of cargo, Forwarding and Consolidation of cargoes from all major locations across the globe. TTSL has a standing of more than two decades in international logistics with constant innovations in highest quality and cost-effective services. The company has a Multi-Modal Transport Operator’s License for servicing its customer’s requirements. It also has a Federal Maritime Commission (FMC) license. The company deliberately skipped CHA license to avoid conflict of interest with other Custom Clearing Agents. TTSL’s area of operations includes Sea Freight Forwarding, Consolidation & Deconsolidation of cargo, Air Freight Logistic and Warehousing & Transportation.
To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 3780000 equity share of Rs. 10 each at a fixed price of Rs. 45 per share to mobilize Rs. 17.01 crore. Issue opens for subscription on 25.07.17 and will close on 28.07.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. The issue constitutes 26.42% of the post issue paid up capital of the company. After initial equity issue at par it issued bonus shares in the ratio of 4 for 1 in March 2009, 9 for 1 in December 2009, 4 for 1 in September 2014, 1 for 5 in January 2015, 2 for 3 in March 2015, 1 for 1 in May 2017 and also raised further 526000 shares at a price of Rs. 45 per share. Company’s current paid up equity capital of Rs. 10.53 crore post bonus and preferential issue made in May 2017 that will stand enhanced to Rs. 14.31 crore post issues.
On performance front, the company has (on a consolidated basis) posted revenue/net profits of Rs. 263.26 cr. / Rs. 9.43 cr. (FY14), Rs. 275.79 cr. / Rs. 5.99 cr. (FY15), Rs. 247.02 cr. / Rs. –(15.49) cr. (FY16) and Rs. 213.27 cr. / Rs. 5.77 cr. (FY17). It has posted decline in top line for last two fiscals and incurred huge losses for FY16 and lower net for FY17 with diminishing pattern in profiting years. Last three fiscal’s average EPS on standalone basis is Rs. –(2.01) and on consolidated basis Rs. –(1.38). Its equity more than doubles post March 2017 which is not reflected in this working. If we attribute latest earnings on fully diluted equity post IPO then asking price is at a P/E of 11 plus and at a P/BV of 3.3 plus. On consolidated basis its last three fiscal’s average RoNW is negative at – (50.44). Peers are trading in 20to 35 P/E range. Although it compares well on the basis of P/E, diminishing pattern of top line and bottom line remains major concern.
On merchant banker’s front, this is the 29th SME issue mandate. Last 10 listings 1 opened at discount, 1 at par and the rest above offer price.
Conclusion: Risk savvy cash surplus investors may consider for long term investment.
Review By on July 19, 2017
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Total Transport Systems Ltd. offers an early investment opportunity in Total Transport Systems Ltd.. A stock market investor can buy Total Transport Systems IPO shares by applying in IPO before Total Transport Systems Ltd. shares get listed at the stock exchanges. An investor could invest in Total Transport Systems IPO for short term listing gain or a long term.
Read the Total Transport Systems IPO recommendations by the leading analyst and leading stock brokers.
Total Transport Systems IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Total Transport Systems IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Total Transport Systems IPO?"
Our recommendation for Total Transport Systems IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Total Transport Systems IPO.
The Total Transport Systems IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Total Transport Systems IPO allotment status to check.
