TVS Supply Chain Solutions makes a muted debut at Rs 207

TVS Supply Chain Solutions made its lackluster debut on the stock exchange on August 23, with a 5% premium to its issue price of Rs 197. Shares are listed at Rs 206.30 on BSE and Rs 207.05 on NSE.
Prior to listing, TVS Supply Chain Solutions enjoyed a gray market premium (GMP) of just Rs 5 per share, indicating a steady start.
According to experts, the highly competitive industry, high IPO prices and reporting losses in the past few years are some other reasons affecting listing performance.
The logistics company’s Rs 880 crore public offering was registered 2.78 times between August 10 and 14, with a bid of 6.99 crore shares against the IPO’s worth of Rs. 2.51 crore. Retail investors were on the front lines, applying for 7.61 times the allotted quota. TVS Supply Chain Solutions began operating as part of the TVS Group as TVS Logistics before becoming a separate company in 2004.
Today, TVS Supply Chain Solutions, or TVS SCS, as a global supply chain company, provides end-to-end solutions to Fortune 500 companies around the world. The business is divided into two main components: Integrated Supply Chain Solutions and Network Solutions.
Currently, TVS SCS has a customer base in 26 countries in Europe, Asia (including India) and Australia. The company recorded revenue growth at a CAGR of 21.5% in FY21-23 to reach Rs 10,235 crore in FY23.
Profit came to Rs 41.8 crore in FY 23 compared to a loss of Rs 45.8 crore in FY 22 and a loss of Rs 76.34 crore in FY 23 21, with a NPAT margin of 0.41% (compared to -0.5% in FY22 and -1.1% in FY21). ).
TVS Supply Chain Solutions is currently available at a PE (price/earnings) of 209.43x on a fiscal 2023 basis, which is expensive compared to peers like TCI Express (at 40.57xs) ), Bluedart Express (46.38 times), but in terms of revenue, TVS is much larger than its peers. However, it is cheaper than Mahindra Logistics which has a P/E of 875 times.