Tejas Cargo India, a logistics company based in Faridabad, Haryana, is launching its IPO on February 14, 2025, closing on February 18, 2025. The IPO aims to raise approximately ₹105.84 crores through a fresh issue of 63,00,000 shares. The price band is set between ₹160 to ₹168 per share, with a face value of ₹10 per share. The minimum lot size is 800 shares, requiring an investment of ₹1,34,400. The company provides long-haul supply chain transportation services by road across India, serving industries like logistics, steel, cement, e-commerce, and FMCG.
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₹168
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Expert Opinions
Tejas Cargo IPO enters the market amid positive sentiment for the logistics sector, driven by rising demand for efficient transportation and supply chain solutions. Company strengths include its established presence in long-haul supply chain transportation and a fleet of 1,131 vehicles as of October 2024. Tejas Cargo serves diverse industries, including logistics, steel, and e-commerce. However, it faces challenges such as fuel price volatility, regulatory changes, and intense competition from established logistics providers.
A thorough valuation analysis requires careful consideration of financials; for FY24, the company’s revenue was ₹419.33 crore and net income was ₹13.22 crore. In FY 2024, the company reported a strong financial performance with a Return on Equity (ROE) of 38.62%, Return on Capital Employed (ROCE) of 28.30%, and Return on Net Worth (RoNW) of 23.85%, indicating efficient capital utilization. From a long-term investment perspective, Tejas Cargo’s established presence, coupled with the growing demand for logistics services in India.
Investor Considerations
Tejas Cargo India IPO presents an opportunity in the logistics sector, supported by its operational efficiency and financial performance. The company has a Price to Book Value of 0.07, a PAT margin of 3.13%, and a high Debt/Equity ratio of 2.91 for FY 2024, indicating significant leverage. The sector outlook remains positive, driven by increasing demand for transportation and supply chain solutions, fueled by growth in e-commerce, manufacturing, and infrastructure.
The company’s growth prospects are strong, supported by its fleet expansion, diverse client base, and focus on technology-driven logistics. However, risk factors include high debt levels, fuel price volatility, regulatory changes, and intense competition. From an investment horizon perspective, Tejas Cargo has potential for long-term growth, but investors should carefully assess its debt burden and ability to sustain profitability before making a decision.
FAQs
The Grey Market Premium showed reasonable accuracy in predicting Tejas Cargo’s listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock delivered a modest gain of 4.17%. With a small prediction error of 4.17%, the GMP’s indication of weak market enthusiasm was largely accurate, though it slightly underestimated the marginal positive listing gain.
Tejas Cargo IPO Current GMP is ₹00.
Tejas Cargo IPO Expected Returns is 0.00%.
Tejas Cargo IPO estimated listing price is ₹168.