1. Home
  2. /
  3. News
  4. /
  5. Weighing the Risks and...

Weighing the Risks and Rewards of S J Logistics IPO

  1. Home
  2. »
  3. News
  4. »
  5. Weighing the Risks and Rewards…
Weighing the Risks and Rewards of S J Logistics IPO
4
(4)

Ready to invest in the S J Logistics IPO? Before you commit, take a moment to review these 10 essential facts. From crucial dates and issue details to strengths and weaknesses, it will help you with the knowledge necessary to make an informed investment decision.

10 Things to Know About S J Logistics IPO

  1. Open and Close Dates: Opens for subscription tomorrow, December 12th, and closes on December 14th. 
  2. The final allotment will likely be made on 15th December. It will be listed on December 19th on the NSE SME platform.
  3. Issue Size: The IPO is a fresh equity issue of up to 38.4 lakh equity shares aggregating to Rs 48 crore.
  4. Price band: Rs. 121 – Rs. 125 per share.
  5. Minimum Lot Size: 1,000 shares.
  6. Issue Opens for Book Building: Qualified institutional buyers (QIBs) quota is 50%, non-institutional investors (NIIs) 15%, and retail investors 35%.
  7. IPO Objectives: Repayment and/or pre-payment, in whole or part, of certain borrowings availed by the Company and to meet working capital requirements
  8. Company Profile: Provides integrated logistics solutions, including warehousing, transportation, freight forwarding, and customs clearance.
  9. Financials: For the period ending September 2023, the company clocked revenues of Rs 103 crore and a net profit of Rs 9.3 crore.
  10. Industry Overview: Boosted by a robust 10-12% annual growth rate, the Indian logistics sector, valued at $250 billion in 2021, is predicted to skyrocket to $380 billion by 2025. This remarkable expansion will be driven by factors such as the rise of e-commerce, government initiatives, and growing outsourcing trends.
kU80DyfWmWa iX fHV2p85u0UFrngl fnxOxcJAAxHXtWeYwSMzUzCLLrh2DHKxiNf9aRU4TDzw8C7BMHQc7pzEDGGWd KBbAtorZlor43iYigwNKTr6fY2JZWjncUqT7Uz1z2m thPIMthpWsTN60U

For a better understanding, here’s a SWOT Analysis of S J Logistics 

STRENGTHSWEAKNESSES
Strong network:
Extensive network of warehouses and transportation infrastructure across India.
Diversified client base: Serves clients across various industries, reducing dependence on any single sector.
Experienced management: Led by a team with extensive experience in the logistics industry.
Strong financials:
Consistent revenue and profit growth over the past three years.
Limited operating history: Relatively new company compared to established players in the industry.
Key customer dependence: A few key customers contribute significantly to revenue, making the company vulnerable to their business decisions.
High debt level: High debt-to-equity ratio, increasing financial risks.
OPPORTUNITIESTHREATS
Economic slowdown: An economic downturn can negatively impact demand for logistics services.
Fuel price fluctuations: Fluctuations in fuel prices can significantly impact operating costs.
Competition: Intense competition from established players and new entrants.
Regulatory changes: Changes in government regulations regarding the logistics industry can impact operations and profitability.
Economic slowdown: Economic downturn can negatively impact demand for logistics services.
Fuel price fluctuations: Fluctuations in fuel prices can significantly impact operating costs.
Competition: Intense competition from established players and new entrants.
Regulatory changes: Changes in government regulations regarding the logistics industry can impact operations and profitability.

S J Logistics is a young company in the growing logistics industry. Remember, before making investment decisions, you must weigh their strengths against potential challenges. Don’t forget to do your due diligence.

QUICK LINKS:

How useful was this post?

Click on a star to rate it!

Average rating 4 / 5. Vote count: 4

No votes so far! Be the first to rate this post.

+ posts

I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.

Share on:

Want A Personalized Portfolio of 20-25 Potential High Growth Stocks?

*T&C Apply