Rising significance of logistics as a strategic function coupled with lower 3PL penetration, rising consumerism in India, regulatory changes like GST implementation, government focus on ‘Ease of Doing Business’ etc. go in favour of larger organised players like FSC. On the flipside, expensive valuations along with significance dependence of group entities and stretched working capital go against FSC. OFS worth Rs6.5bn representing 24.43% of share capital (Rs1.3bn from Promoters & Rs5.2bn from PE investor Griffin Partners) values the company at 57x FY17 & 40x FY18E PER, respectively. We like the space; however, the valuations are stretched and one should subscribe only with a longer term investment horizon.
Link to the PDF
About Prabhudas Lilladher
Prabhudas Lilladher has a nationwide distribution network, consisting of branches, franchisees and associates, providing a comprehensive gamut of financial services in the Institutional and Retail domain. Their services includes Equity, derivatives; margin funding, mutual funds, PMS, IPOs and online trading.
For more information please write in to email@example.com
Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.