Table of content
Pranik Logistics Introduction
Pranik Logistics Limited is a logistics service provider based in Kolkata, India. Founded in 2015, the company offers end-to-end logistics solutions, including transportation, warehousing, material handling, and freight forwarding. Pranik Logistics caters to various industries such as retail, consumer durables, telecommunications, manufacturing, and pharmaceuticals.
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Brief about Pranik Logistics
Summary of the business of Pranik Logistics
Pranik Logistics company is engaged as carrying and forwarding agent providing end-to-end Logistics solutions i.e. from the point of origin to the point of consumption, in order to meet the needs of our customers and corporations. We are a pan India logistics provider, acting as carrying and forwarding agent and providing integrated services including transportation, warehousing, material handling and freight forwarding to our customers belonging to various industries such as Automotive, Engineering, Construction, Customer durables, Retail, Textile etc.
History of Pranik Logistics
Company was incorporated as a Private Limited Company under the name of “Pranik Logistics Private Limited” under the Companies Act, 2013 vide certificate of incorporation dated February 24, 2015, issued by Registrar of Companies, Kolkata, bearing CIN U60231WB2015PTC205412. Further, our Company was converted into a Public Limited Company in pursuance of a special resolution passed by the members of our Company at the Extra Ordinary General Meeting held on January 15, 2024 and the name of our Company was changed from “Pranik Logistics Private Limited” to “Pranik Logistics Limited” & Registrar of Companies, Kolkata has issued a new certificate of incorporation consequent upon conversion dated March 07, 2024, bearing CIN U60231WB2015PLC205412.
Promoters & Board of Directors of Pranik Logistics
- The promoter of Company is Mr. Pranav Kumar Sonthalia, Ms. Shradha Kumari, Ms. Minal Sonthalia.
Board of directors of Pranik Logistics
| Name | Designation |
| Pranav Kumar Sonthalia | Managing Director |
| Shradha Kumari | Director |
| Minal Sonthalia | Director |
| Nimisha Bhadrakumar Shah | Independent Director |
| K G Raghuraman | Independent Director |
Share Holding pattern of Pranik Logistics
| Name of shareholder | Pre issue | Post issue |
| Promoters | ||
| Pranav Kumar Sonthalia | 98.24% | 72.20% |
| Shradha Kumari | 1.75% | 1.29% |
| Minal Sonthalia | Negligible | Negligible |
| Total – A | 99.99% | 73.49% |
| Public | ||
| Public | Negligible | Negligible |
| IPO | – | 26.51% |
| Total-B | 0.01% | 26.51% |
Strength of Pranik Logistics
- Experienced and Qualified management team
- Asset-light business model
- Long-standing client relationships with our clients across multiple verticals.
- Quality Assurance and Standards
Strategies of Pranik Logistics
- Expansion in our goods transportation network and fleet size
- Continued improvement in operating efficiencies through technology enhancements
Industry Outlook
Indian Logistics Industry Market Overview:
The India logistics market size reached US$ 282.3 Billion in 2023. Looking forward, the market is expected to reach US$ 557.4 Billion by 2032, exhibiting a growth rate (CAGR) of 7.85% during 2024-2032. The significant expansion in the e-commerce and online retail industry, the implementation of favorable government policies encouraging the adoption of logistics services, and emerging technological advancements are some of the major factors contributing to the market growth.
Logistics is a vital component of modern business operations that encompasses the management, planning, and execution of the flow of goods, information, and resources from the point of origin to the final destination. It optimizes the efficient storage and movement of goods, services, and information, all customized to satisfy customer demands in a cost-effective manner. It includes limited to order fulfillment, fleet and inventory management, warehousing, handling of materials, and inbound and outbound transportation. It is essential in overseeing and tracing data pertaining to space utilization, work schedules, order placements, and the successful delivery of diverse products. It also serves to enhance inventory control, customer service, the secure transit of voluminous packaging while preventing damage or spillage, expedited product deliveries, and the efficient transfer of large quantities of goods.
The market is primarily driven by the growing e-commerce sector. In addition, the increasing number of online retail transactions is escalating demand for efficient last-mile delivery services for optimizing digital commerce operations, thus influencing market growth. Moreover, the introduction of user-friendly return and refund policies by diverse e-commerce platforms is escalating the demand for reverse logistics, supported by flexible services such as tracking capabilities, which represents another major growth-inducing factor. Besides this, leading players are using advanced technology solutions, including real-time tracking, predictive analytics, and sophisticated functionalities, to streamline supply chains and cater to evolving customer demands, thus propelling market growth. Along with this, the widespread adoption of eco-friendly logistics solutions, the rise of trade agreements, and increased consumer spending power are accelerating market growth. Furthermore, the integration of advanced technologies such as biometrics, global positioning system (GPS), and autonomous vehicles with logistics systems are providing a positive thrust to the market growth.
India Logistics Market Trends/Drivers:
The significant expansion in the e-commerce industry
The growing population, rising disposable income, and the increasing number of online shopping activities are influencing market growth. Additionally, the emergence of specialized e-commerce logistics services led to the establishment of dedicated distribution centers and fulfillment hubs strategically positioned to accommodate the influx of online orders thus contributing to the market growth. It uses advanced automation technologies, such as robotic sorting systems and AI-powered inventory management, to optimize warehousing processes and ensure speedy order processing. Moreover, the e-commerce industry is investing in technology-driven logistics solutions representing another major growth-inducing factor. Along with this, real-time tracking of shipments, automated warehouses that can autonomously manage inventory, and advanced route optimization algorithms are integral to logistics operations thus propelling the market growth. These innovations enhance operational efficiency, and reduce delivery times, leading to enhanced customer satisfaction and loyalty.
The implementation of favorable government policies
The implementation of favorable policies such as Make in India and Digital India is creating an environment conducive to logistics advancements, thus influencing market growth. Additionally, the growing emphasis on improving infrastructure, including roads, railways, and ports to improve transportation efficiency and connectivity, and reduce transit times and costs for logistics operations are contributing to the market growth. Moreover, the introduction of the goods and services tax (GST) significantly streamlined the tax structure, replacing a complex web of taxes that dismantled inter-state barriers, allowing for smoother movement of goods across the country which represents another major growth-inducing factor. It has led to more efficient supply chain routes, optimized warehousing locations, and minimized the need for complex tax compliance procedures. Along with this, these government efforts are attracting foreign investments, technology collaborations, and innovations within the logistics sector, thus propelling market growth.
India Logistics Industry Segmentation:
Breakup by Model Type:
- 2 PL
- 3 PL
- 4 PL
3PL represents the most popular model type
Third-Party Logistics (3PL) is a model in which companies outsource logistics and supply chain management functions to specialized service providers which is gaining substantial traction due to its multifaceted advantages, thus contributing to the market growth.
Moreover, 3PL providers offer a comprehensive suite of services encompassing transportation, warehousing, inventory management, distribution, and value-added services. This holistic approach streamlines operations for businesses, allowing them to focus on core competencies while entrusting logistics expertise to specialized partners.
Furthermore, the dynamic nature of India’s business environment, characterized by rapid market fluctuations and evolving consumer demands, aligns well with the agility of 3PL providers, who adapt swiftly to changing requirements, providing scalable solutions that cater to seasonal variations, market trends, and emerging opportunities.
Breakup by Transportation Mode:
- Roadways
- Seaways
- Railways
- Airways
Roadways presently account for the largest market share
Roadways provide the flexibility to navigate intricate routes, ensuring door-to-door delivery and catering to the unique demands of different industries their adaptability to transport numerous cargo, from perishables to bulk commodities is influencing the market growth.
Additionally, the Indian road transport system supports last-mile delivery, an essential component of e- commerce and retail operations the exponential growth of online shopping and the rising demand for swift deliveries to customers’ doorsteps are augmenting the market growth. Besides this, government initiatives, such as the development of national highways and the modernization of road infrastructure enhance connectivity, reduce transit times, and improve the efficiency of cargo movement which is propelling the market growth.
Furthermore, other transportation modes such as railways and waterways hold their significance, while the flexibility, accessibility, and reliability of roadways make them the linchpin of the Indian logistics ecosystem, thus providing a positive thrust to the market growth.
Breakup by End Use:
- Manufacturing
- Consumer Goods
- Retail
- Food and Beverages
- IT Hardware
- Healthcare
- Chemicals
- Construction
- Automotive
- Telecom
- Oil and Gas
- Others
Manufacturing holds the largest share in the market.
The manufacturing sector is driven by robust production activities, encompassing numerous industries such as automotive, electronics, pharmaceuticals, textiles, and consumer goods are influencing the market growth.
Moreover, the Make in India initiative, aimed at improving domestic manufacturing, is increasing production capacities and expanding operations across numerous industries which represents another major growth- inducing factor. Along with this, the growing manufacturing activities require agile and sophisticated logistics operations to facilitate smooth procurement, distribution, and market penetration, thus propelling market growth.
Furthermore, the manufacturing sector’s reliance on just-in-time production methods further underscores the need for precision and timeliness in logistics, while lean inventory practices call for synchronized and efficient transportation, minimizing inventory holding costs while ensuring uninterrupted production cycles are contributing to the market growth.
Breakup by Region:
- North India
- West and Central India
- South India
- East India
West and Central India exhibits a clear dominance in the market.
The West and Central India market is primarily driven by increasing domestic and international trades across the country. In addition, states such as Maharashtra and Gujarat are major industrial and commercial centers, fostering robust demand for logistics services, thus influencing market growth.
Moreover, a well-developed infrastructure that supports the efficient movement of goods, connecting northern and southern regions states, such as Madhya Pradesh and Chhattisgarh, represent another major growth- inducing factor. Along with this, the rising demand for logistics solutions to connect major cities and its emerging status as an e-commerce distribution hub are propelling the market growth.
Furthermore, the implementation of government initiatives, such as the development of the Delhi-Mumbai Industrial Corridor (DMIC) and the Western Dedicated Freight Corridor (WDFC), enhances transportation infrastructure in these regions, contributing to their logistics prowess.
Competitive Landscape:
Nowadays, key players in the market are employing a diverse range of strategies to fortify their positions and harness the industry’s growth potential. In addition, logistics companies are embracing technology to enhance their operational efficiency and customer experience. They are adopting advanced tracking and monitoring
systems, implementing IoT solutions for real-time visibility, and leveraging data analytics to optimize routes, reduce transit times, and enhance overall supply chain management. Moreover, companies are offering tailored logistics solutions to cater to diverse industry needs from specialized temperature-controlled transportation for perishables to specialized handling for high-value goods, customization ensures better alignment with clients’ requirements. Besides this, key players are focusing on customer satisfaction, and providing seamless tracking, transparent communication, and flexible delivery options.
Business Data of Pranik Logistics
Verticals of Pranik Logistics
- Carrying and forwarding agents
- Godown rent
- Manpower charges
- Storage and warehouses charges
- SPA income
Revenue contribution from Geography presence of Pranik Logistics
(Rupees in Lakhs, except %)
| State | December 31, 2023 | March 31,2023 | March 31,2022 | March 31,2021 |
| West Bengal | 1,926.92 | 2,212.08 | 1,523.15 | 915.18 |
| % of Revenue from operations | 41.00% | 36.55% | 45.51% | 44.28% |
| Jharkhand | 959.55 | 1,031.73 | 914.54 | 937.09 |
| % of Revenue from operations | 20.42% | 17.05% | 27.33% | 45.34% |
| Other States | 1812.96 | 2808.89 | 909.04 | 214.48 |
| % of Revenue from operations | 38.58% | 46.41% | 27.16% | 10.38% |
| Revenue from operations | 4,699.43 | 6,052.70 | 3,346.73 | 2,066.75 |
Customer concentration of Pranik Logistics
(Rupees in Lakhs, except %)
| Particulars | December 31,2023 | March 31, 2023 | March 31, 2022 | March 31, 2021 |
| Revenue from Operations | 4,699.43 | 6,052.70 | 3,346.73 | 2,066.75 |
| Top ten (10) Customers | 4,133.47 | 5,676.57 | 3,151.17 | 2,054.35 |
| % of top ten (10) Customers to Revenue from Operations | 87.96% | 92.72% | 94.16% | 99.40% |
Customers of Pranik Logistics
Competition of Pranik Logistics
The logistics industry in India is highly competitive, dominated by a large number of unorganized players. Many segments within the logistics industry are highly commoditized and have low barriers to entry or exit, leading to a market with a very high degree of fragmentation.
We operate in a highly competitive market. We face competition from other Companies providing logistic solutions operating in the same geographies as ours. While service quality, technical ability, performance record, experience, health and safety records and the availability of skilled personnel are key factors in client decisions among competitors, price often is the deciding factor in most tender awards. Some of our competitors may have greater resources than those available to us.
Pranik Logistics competitors include:
- SJ Logistics Limited.
Peer companies comparison of Pranik Logistics
(Rupees in Lakhs, except EPS, % and ratios)
| Name of the company | Face Value (Per share) | CMP | EPS (Rs) | P/E Ratio | RONW (%) | NAV (Rs. Per share) | PAT (Rs. In Lakhs) |
| Pranik Logistics Limited | 10 | 77 | 2.93 | 26.28 | 17.65 | 16.37 | 157.9 |
| Peer Group | |||||||
| SJ Logistics (India) Limited | 10 | 396.5 | 2.64 | 61.53 | 16.51 | 53 | 488.08 |
(Rupees in Lakhs, except % and ratios)
| Particulars | Pranik Logistics Limited | SJ Logistics (India) Limited | ||||
| Mar-23 | Mar-22 | Mar-21 | Mar-23 | Mar-22 | Mar-21 | |
| Revenue from Operations | 6052.7 | 3346.73 | 2066.75 | 13431.17 | 10362.43 | 12392.64 |
| EBITDA | 345.13 | 97.61 | 48.41 | 1172.47 | 363.25 | 343.83 |
| EBITDA Margin | 5.70% | 2.92% | 2.34% | 8.73% | 3.51% | 2.77% |
| PAT | 93.22 | 31.54 | 17.92 | 761.56 | 188.37 | 86.32 |
| PAT Margin | 1.54% | 0.94% | 0.87% | 5.67% | 1.82% | 0.70% |
| Net Worth | 736.63 | 363.96 | 332.42 | 3120.32 | 1536.49 | 1348.12 |
SWOT ANALYSIS of Pranik Logistics
- Strengths
- Comprehensive Service Offering: Pranik Logistics provides end-to-end logistics solutions, including transportation, warehousing, material handling, and freight forwarding.
- Strong Fleet and Infrastructure: The company owns 86 commercial vehicles and 30 warehouses, which enhances its operational efficiency.
- Experienced Management Team: Pranik Logistics has a qualified management team with long-standing customer relationships across various industries.
- Asset-Light Business Model: The company’s asset-light approach allows for flexibility and scalability in operations.
- Weaknesses
- Dependence on Third-Party Vehicles: Despite having its own fleet, Pranik Logistics still relies on third-party vehicles for some operations, which can affect reliability.
- High Competition: The logistics industry is highly competitive and fragmented, which can impact market share and profitability.
- Limited Geographical Reach: While Pranik Logistics operates PAN India, its reach is still limited compared to larger logistics companies with a global presence.
- Opportunities
- Expansion into New Markets: Pranik Logistics can explore opportunities to expand its services to new geographical regions and industries.
- Strategic Partnerships: Forming partnerships with other companies can help Pranik Logistics enhance its service offerings and market reach.
- Technological Advancements: Investing in technology to improve logistics operations, such as automation and digital tracking, can provide a competitive edge.
- Threats
- Economic Downturns: Economic downturns can affect the demand for logistics services, impacting the company’s revenue.
- Regulatory Changes: Changes in regulations related to transportation and warehousing can increase operational costs.
- Fuel Price Volatility: Fluctuations in fuel prices can significantly impact transportation costs and profit margins.
Business risk factors of Pranik Logistics
- Pranik Logistics business heavily relies on the expertise and guidance of our Directors and Key Managerial Personnel to ensure sustained success. The loss of any of them could have a significant impact on our company.
- A major portion of Pranik Logistics expenses is incurred in freight & Forwarding charges that are included in the head “other expenses”. Pranik Logistics Inability to effectively reduce and control these expenses may adversely impact our profitability in the future.
(Rupees in Lakhs, except EPS, % and ratios)
| Particulars | December 31, 2023 | March 31, 2023 | March 31, 2022 | March 31, 2021 |
| Revenue from Operations | 4,699.43 | 6,052.70 | 3,346.73 | 2,066.75 |
| Total expenses | 4,524.16 | 5,955.24 | 3,312.91 | 2,048.73 |
| Freight & Forwarding charges | 2,860.05 | 4,338.95 | 2,493.25 | 1,269.20 |
| Percentage (%) of Revenuefrom operations | 60.86% | 71.69% | 74.50% | 61.41% |
| Percentage (%) of Totalexpenses | 63.22% | 72.86% | 75.26% | 61.95% |
- Pranik Logistics top five states contribute Pranik Logistics major revenue for the period ended December 31, 2023, and year ended 31st March 2023, 2022, 2021. Any loss of business from one or more of these states may adversely affect Pranik Logistics revenues and profitability.
Financials of Pranik Logistics
Key Financial Ratios of Pranik Logistics
| Particulars | December 31, 2023 | March 31,2023 | March 31,2022 | March 31,2021 |
| Current ratio | 1.34 | 1.32 | 1.26 | 1.44 |
| Debt-equity ratio | 2.22 | 1.88 | 1.59 | 0.69 |
| Debt service coverage ratio | 3.88 | 4.26 | 4.20 | 6.23 |
| Return on Equity Ratio | 0.18 | 0.13 | 0.09 | 0.05 |
| Trade receivables turnover ratio | 3.74 | 5.57 | 5.08 | 4.00 |
| Net capital turnover ratio | 6.92 | 13.40 | 13.48 | 8.36 |
| Net profit ratio | 0.03 | 0.02 | 0.01 | 0.01 |
| Return on capital employed | 0.30 | 0.23 | 0.15 | 0.10 |
Key Performance Indicators of Pranik Logistics
(Rupees in Lakhs, except EPS, % and ratios)
| Particulars | December31st, 2023 | March 31st ,2023 | March 31st ,2022 | March 31st ,2021 |
| Revenue from operations | 4,699.43 | 6,052.70 | 3,346.73 | 2,066.75 |
| EBITDA | 500.80 | 345.13 | 97.61 | 48.41 |
| EBITDA (%) Margin | 10.66% | 5.70% | 2.92% | 2.34% |
| ROCE (%) | 29.76% | 23.38% | 15.40% | 10.33% |
| Current Ratio | 1.34 | 1.32 | 1.26 | 1.44 |
| Operating Cashflow | 454.98 | 348.01 | 161.34 | 187.09 |
| PAT | 157.90 | 93.22 | 31.54 | 17.92 |
| ROE/ RoNW | 17.65% | 12.66% | 8.67% | 5.39% |
| EPS | 2.93 | 1.73 | 1.21 | 0.69 |
Assets & Liabilities of Pranik Logistics
(Rupees in Lakhs)
| Particulars | 31 December, 2023 | 31 March, 2023 | 31 March, 2022 | 31 March, 2021 |
| Equity and Liabilities | ||||
| Shareholders’ Funds | 894.53 | 736.63 | 363.96 | 332.42 |
| Non-Current Liabilities | 299.18 | 189.38 | 98.76 | 12.5 |
| Current liabilities | 2,005.20 | 1,426.73 | 941.77 | 566.89 |
| Total Equity and Liabilities | 3,198.91 | 2,352.73 | 1,404.49 | 911.81 |
| Assets | ||||
| Non-current assets | 514.14 | 474.47 | 214.42 | 97.71 |
| Current assets | 2684.77 | 1878.25 | 1190.08 | 814.1 |
| Total | 3,198.91 | 2,352.74 | 1,404.48 | 911.81 |
Profit & Loss of Pranik Logistics
(Rupees in Lakhs, except EPS, % and ratios)
| Particulars | Mar-23 | Mar-22 | Mar-21 |
| Revenue from Operations | 6052.7 | 3346.73 | 2066.75 |
| EBITDA | 345.13 | 97.61 | 48.41 |
| EBITDA Margin | 5.70% | 2.92% | 2.34% |
| PAT | 93.22 | 31.54 | 17.92 |
| PAT Margin | 1.54% | 0.94% | 0.87% |
Cash Flow of Pranik Logistics
(Rupees in Lakhs)
| Net Cash Generated from | December31, 2023 | March 2023 | March 2022 | March 2021 |
| Operating Activities | 454.98 | 348.01 | 161.34 | 187.09 |
| Investing Activities | (135.42) | (349.68) | (128.58) | 2.94 |
| Financing Activities | (39.28) | 278.12 | 54.96 | (8.66) |
Capital structure of Pranik Logistics
(Rupees in Lakhs, except EPS, % and ratios)
| Particulars | 31 December, 2023 |
| Debt | |
| Short Term Debt | 1,192.71 |
| Long Term Debt | 189.38 |
| Total Debt | 1,382.09 |
| Shareholders’ Fund (Equity) | |
| Share Capital | 539.45 |
| Reserves & Surplus | 197.18 |
| Total Shareholders’ Fund (Equity) | 736.63 |
| Long Term Debt/Equity | 0.26 |
| Total Debt/Equity | 1.88 |
IPO Details of Pranik Logistics
Pranik Logistics IPO Details
| Feature | Details |
|---|---|
| IPO Type | Book Built Issue |
| Issue Size | 29,18,400 equity shares |
| Face Value | ₹10 per share |
| Price Band | ₹73 – ₹77 per share |
| Total Issue Size | ₹22.47 Crores (Fresh Issue) |
| Listing | NSE SME |
| Open Date | October 10, 2024 |
| Close Date | October 14, 2024 |
| Listing Date | October 17, 2024 (Tentative) |
| Minimum Bid (Lot Size) | 1600 Shares (₹123,200) |
Object of the issue of Pranik Logistics
| Particulars | Amount (In Rs. Lakh) |
| Investment in Technology | 80.00 |
| Capital Expenditure | 220.00 |
| Working Capital Requirement | 1,200.00 |
| General Corporate Purposes | [●] |
Litigation involved in Pranik Logistics
Gray Market Premium
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