Western Carriers IPO - Issue Details, Outlook, Financials, Peer Comparison, Strengths, Risks & More: DRChoksey

DRChoksey Research Report

Western Carriers India Ltd. launched its initial public offering today and will conclude on Sept. 18. The Kolkata-based multi-modal, rail-focused, 4PL asset-light logistics company has set the price band in the range of Rs 163-172 per share. The minimum order lot for bidding is 66.

The Rs 492.9 crore IPO consists of a fresh issue of Rs 400 crore and an offer for sale of shares worth Rs 92.9 crore.

Object of the issue

• Repayment or pre-payment of borrowings

• Funding of capital expenditure requirements

• General corporate purposes.

Outlook and Valuation:

Western Carriers India a leading private rail-focused 4PL logistics provider, is strategically positioned to capitalise on the expanding Indian logistics market. Operating under an asset-light model, the company delivers multi-modal logistics solutions across road, rail, water, and air transport, serving a diverse client base.

With a solid financial track record, Western Carriers has achieved a 7% CAGR in revenue and an 18% CAGR in Ebitda from FY22 to FY24, underscoring its operational efficiency and profitability.

The company also has reported an return on equity and return on capital employed of 22% and 29% respectively in FY24. The company’s strengths lie in its extensive pan-India network, strong client relationships, and alignment with key government initiatives like PM Gati Shakti.

Currently valued at an adjusted PE ratio of 22 times, which is below the industry average, Western Carriers presents an favorable valuation.

Considering its strong growth prospects and strategic positioning, we recommend a “Subscribe” rating for the IPO.

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