Jalan Transolutions (India) Ltd IPO Review – NSE SME Issue

Today in this post We will discuss about Jalan Transolutions (India) Ltd IPO review. This is the new initial public offering to hit the NSE SME exchange. Once again as this is going to hit the SME exchange the trading will be done in lots and partial booking will not be available.

Issue Details:
Issue Date: May 18, 2017 – May 23, 2017
Offer Price: Rs. 46 per equity share
Minimum Application: 3000 equity shares

Issue Objective:
1) Invest in more transportation trucks.
2) Repayment of debts.
3) General corporate purposes.

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Company Details:
Jalan Transolutions (India) Ltd is promoted and managed by Shri Manish Jalan and Shri Rajesh Jalan. The comany started its business on 2003 and it is head quartered at Ghaziabad, UP. The company actually transports 2-wheelers from the factories to show rooms and all leading 2-wheeler manufacturers are clients of Jalan Transolutions (India) Ltd. Clientelle include Hero, Hoda, Mahindra, Ashok Leyland, TVS, Bajaj etc.

Though they are mainly operating in north India but they are trying to expand throughout the country. They have around 400 trucks to transport the 2-wheelers and they also transport with the help of small transporters on job work basis. They have in-house maintenance for trucks at Haryana.

Company Financials:
Jalan Transolutions (India) Ltd IPO
From the image above it has been noted that the company has managed to increase their turnover year on year. But after FY2013 profit has declined on FY2014 and FY2015. This may be due the debt of the company.

Jalan Transolutions (India) Ltd IPO Review: It has been noted that after the IPO the promoter is not reducing their stake OR divesting from the company. As per current financials and issue price the company is trading at PE ratio close to 17 while the peer companies have average PE ratio of around 30. Hence the issue is priced cheap as compared to its peers. One can invest with a medium term perspective and listing gains.

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