Co is one of India’s largest organised third-party logistics service operators, according to the A&M Report. Co offer automated and IT-enabled warehousing, distribution and other logistics solutions to a wide range of customers. Co’s service offerings, warehousing infrastructure, pan-India distribution network, “hub-and-spoke” transportation model and automated technology systems support co’s competitive market position.
Co’s customers operate in various sectors across India, including retail, fashion and apparel, automotive and engineering, food and beverage, fast-moving consumer goods (“FMCG”), ecommerce, healthcare, electronics and technology, home and furniture and ATMs. Co’s distribution centres and delivery network form a supply chain system across India. As of September 30, 2017, co run its contract logistics operations through 42 distribution centres across India, covering appro ximately 3.84 million square feet of warehouse space and also operate 2 distribution centres of its customers, covering approximately 0.37 million square feet of warehouse space. Co is promoted by Future Enterprises Limited, which is promoted by Kishore Biyani.
Click here to read the full report
Company is bringing the issue at price band of Rs 660-664/share at P/E multiple of almost 40 on post issue annualized H1FY18 eps. Co being one of the largest service providers with an extensive network of facilities in a fast-growing third-party logistics market is looking attractive for long term investment. Hence we recommend “Subscribe” on issue for long term .