Subscribe for Western Carriers (India) Ltd; KR Choksey

KR Choksey, has come out with its report on Western Carriers (India)s Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on September 12 2024.

Broker Research

September 13, 2024 / 11:06 IST

IPO

KR Choksey, Western Carriers (India) Ltd

Western Carriers (India) Limited is a leading private multi-modal logistics provider in India, with a strong focus on rail-based transportation and 4PL services. Founded in 1972 by Rajendra Sethia and officially incorporated in 2011, the company has experienced significant growth over the past five decades. Operating on an asset-light model, Western Carriers delivers a wide range of logistics solutions across road, rail and sea/river, serving both domestic and EXIM cargo needs. Its tailored, end-to-end services cater to a variety of industries, including metals, FMCG, pharmaceuticals and oil & gas. With prominent clients such as Tata Steel, Hindalco and Coca-Cola, Western Carriers has established itself as a reliable partner. Its nationwide reach and commitment to technology-driven logistics solutions enable it to address complex supply chain challenges throughout India.

Valuation and Outlook

The company also has reported an ROE and ROCE of 22% and 29% respectively in FY24. The company’s strengths lie in its extensive pan-India network, strong client relationships, and alignment with key government initiatives like PM Gati Shakti. Currently valued at an adjusted PE ratio of 22x, which is below the industry average, Western Carriers (India) Limited presents an favourable valuation. Considering its strong growth prospects and strategic positioning, we recommend a “SUBSCRIBE” rating for the IPO.

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