CJ Darcl Logistics – About the Company
With over 36 years of operational experience, CJ Darcl Logistics has become a leading logistics company in India, offering multimodal services across various verticals such as road/FTL transportation, rail/multimodal transportation, warehousing and many more. CJ Darcl operates on an 'asset-right' business model, with assets necessary for quality services either owned or provided by a large network of business partners. As of March 31, 2023, the company owned 990 commercial vehicles and a network of 820,333 partnered fleets. The company provides differentiated logistics solutions with its pan-India presence, integrated service offerings, market intelligence, and large network of business partners.
CJ Darcl Logistics IPO Objectives
CJ Darcl Logistics IPO comprises of both fresh issue and the offer for sale (OFS) by selling promoter.
- The IPO consist of Offer for sale of up to 5,431,071 Equity Shares aggregating up to ₹ [●] million by selling promoters.
- According to the DRHP, the proceeds from Fresh issue, aggregating up to ₹ 340 crores will be utilized for following objectives:
| Particulars | Amount which will be financed
from Net Proceed of fresh issue |
| Repayment/ prepayment, in full or in part of certain
outstanding borrowings availed by Company |
2,400.00 |
| Funding capital expenditure requirements
of Company towards purchase of EVs |
100 |
| General corporate purposes | [●] |
| Total | [●] |
CJ Darcl Logistics IPO Details:
| IPO Open Date | To be Announced |
| IPO Close Date | To be Announced |
| Basis of Allotment | To be Announced |
| Listing Date | To be Announced |
| Face Value | Rs 10 per share |
| Price | To be Announced |
| Lot Size | To be Announced |
| Total Issue Size | [●] Equity Shares |
| Aggregating up to ₹ [●] million | |
| Fresh Issue | Up to [●] Equity Shares |
| Aggregating up to ₹ 3,400.00 millions | |
| Offer For Sale | Up to 5,431,071 Equity Shares |
| Aggregating up to ₹ [●] million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
CJ Darcl Logistics IPO Issue Price & Size
Final RHP of CJ Darcl Logistics hasn’t been filled with the SEBI, so therefore any pricing information isn’t known at the moment. Only the fresh issue size is known, which is Rs. 350 crores aggregating up to ₹ [●] million and offer for sale by existing shareholders amounting up to 5,431,071 Equity Shares. All the final pricing details will be details will be updates once the RHP is made public.
CJ Darcl Logistics IPO Launch Date
CJ Darcl Logistics IPO will be open on XXXX (Date) and will be closed XXXX (Date). You can bid in the CJ Darcl Logistics IPO between these date ranges to become eligible for the IPO application and other proceedings in the IPO.
CJ Darcl Logistics Financial Statements:
| Particulars | FY23 | FY22 | FY21 |
| Income | |||
| Revenue from operations | 42158.26 | 36813.81 | 28875.69 |
| Other income | 235.7 | 149.48 | 202.82 |
| Total Income | 42393.96 | 36963.29 | 29078.51 |
| Expenses | |||
| Cost of services | 38429.47 | 33643.17 | 26370.32 |
| Employee benefit expenses | 1611.64 | 1300.42 | 1134.02 |
| Finance cost | 455.66 | 309.16 | 380.33 |
| Depreciation and amortization expense | 524.77 | 436.45 | 439.13 |
| Other expenses | 504.81 | 473.93 | 330.48 |
| Total expenses | 41526.35 | 36163.13 | 28654.28 |
| Restated profit for the year | 677.03 | 613.68 | 317.47 |
| Basic EPS | 29.87 | 27.08 | 14.01 |
| Diluted EPS | 29.87 | 27.08 | 14.01 |
| Key Performance Indicator | FY23 | FY22 | FY21 |
| Revenue from Operations | 42158.26 | 36813.81 | 28875.69 |
| Revenue from Operations Growth YOY % | 14.52% | 27.49% | 20.18% |
| Restated profit for the year | 677.03 | 613.68 | 317.47 |
| Restated profit for the year (%) | 1.61% | 1.67% | 1.10% |
| Return on Capital Employed (%) | 16.86% | 18.21% | 15.02% |
| Return on Equity (%) | 12.47% | 12.82% | 7.35% |
| EBITDA | 1848.04 | 1545.77 | 1243.69 |
| EBITDA (%) | 4.38% | 4.20% | 4.31% |
| Net debt | 5913.36 | 5119.07 | 3904.78 |
| Net cashflow generated / (used) in operating activities | 1267.06 | -282.78 | 713.26 |
| Debt to Equity (times) | 1.06 | 1.05 | 0.93 |
| Working Capital Days | 28 | 28 | 30 |
| Fixed Assets Turnover Ratio | 15.51 | 17.74 | 13.94 |
| Operating Margin | 2.69 | 3.054 | 1.91 |
(In million, unless specified otherwise)
| Key Performance Indicator | ||||||
| Particulars | TCI Express | Mahindra Logistics | ||||
| FY23 | FY22 | FY21 | FY23 | FY22 | FY21 | |
| Revenue from Operations | 12410.1 | 10814.7 | 8439.9 | |||
| Revenue from Operations Growth YOY % | 14.75 | 28.14 | -18.21 | 23.85 | 26.87 | 5.5 |
| Restated profit for the year | 1382.8 | 1288.4 | 1006 | 246.3 | 150.7 | 287.9 |
| Restated profit for the year (%) | 11.22% | 11.91% | 11.92% | 0.48% | 0.36% | 0.88% |
| Return on Capital Employed (%) | 32.26% | 35.12% | 33.94% | 8.74% | 6.96% | 8.15% |
| Return on Equity (%) | 24.60% | 26.56% | 26.09% | 4.45% | 2.70% | 5.14% |
| EBITDA | 2016.5 | 1829 | 1419.7 | 2756.1 | 1978.5 | 1489.4 |
| EBITDA (%) | 16.25% | 16.91% | 16.82% | 5.37% | 4.78% | 4.56% |
| Net debt | -159.5 | -170.1 | -262 | 2751.7 | -938.3 | -1713.4 |
| Net cash flow generated / (used)
in operating activities |
1465.1 | 1275.6 | 1188.5 | 1194 | 1909.8 | 2937 |
| Debt to Equity (times) | 0 | 0 | 0 | 0.72 | 0.07 | 0.05 |
| Working Capital Days | 58 | 65 | 66 | 4 | 18 | 30 |
| Fixed Assets Turnover Ratio | 3.77 | 4.01 | 4.16 | 26.68 | 15.72 | 11.56 |
CJ Darcl Logistics IPO Promoters & Shareholding of the Company
There are four promoter of CJ Darcl Logistics
- Krishan Kumar Agarwal, (Managing Director)
- Darshan Kumar Agarwal, (Joint Managing Director)
- Roshan Lal Agarwal, (Joint Managing Director)
- Narender Kumar Agarwal, (Joint Managing Director)
- CJ Logistics Corporation
The promoters collectively hold 12,849,352 Equity Shares, representing approx 56.70% of paid-up equity share capital of company.
| Name | Number of equity shares | % of the pre-Offer
paid-up Equity Share Capital |
Number of Equity Shares
offered in the Offer for Sal |
| Krishan Kumar Agarwal | 396832 | 1.75 | 369000 |
| Darshan Kumar Agarwal | 162050 | 0.72 | NIL |
| Roshan Lal Agarwal | 328502 | 1.45 | 203502 |
| Narender Kumar Agarwal | 630897 | 2.78 | 230897 |
| CJ Logistics Corporation | 11331071 | 50 | NIL |
| Total | 12849352 | 56.7 | |
| Promoter Group | |||
| Krishan Kumar Agarwal & Sons* | 625178 | 2.76 | 150000 |
| Prem Lata Agarwal | 845063 | 3.73 | 150000 |
| Puneet Agarwal | 864488 | 3.81 | 447489 |
| Yogesh Agarwal | 233802 | 1.03 | 150000 |
| Darshan Kumar & Sons (HUF) | 738109 | 3.26 | 336535 |
| Vineet Aggarwal* | 841833 | 3.71 | NIL |
| Nitin Agarwal | 199982 | 0.88 | 124982 |
| Sushma Agarwal | 1144879 | 5.05 | 529279 |
| Ishant Agarwal | 28599 | 1.32 | 173599 |
| Nitesh Agarwal* | 860129 | 3.8 | 425129 |
| Samiha Agarwal | 696285 | 3.07 | 446285 |
| Nikhil Agarwal | 584458 | 2.58 | 184458 |
| Madhu Agarwal | 498099 | 2.2 | 248099 |
| Sanjay Kumar Agarwal | 20000 | 0.09 | NIL |
| Tek Chand Agarwal (HUF) * | 289574 | 1.28 | 289574 |
| Pushpa Bansal | 23000 | 0.1 | 23000 |
| Vineet Agarwal HUF | 6000 | 0.03 | 6000 |
| Nitin Agarwal HUF | 6000 | 0.03 | 6000 |
| Raj Bala Agarwal | 235113 | 1.04 | NIL |
| Vibha Gupta | 162430 | 0.72 | NIL |
| Total | 9172421 | 40.49 |
Why Invest in CJ Darcl Logistics IPO?
While investing in an IPO-bounded company, one should check their fundamentals that help an investor to Visions Company’s financial performance and competitive strength which at last drives its business growth. Fundamental analysis apart from financial and competitive strength, also help you to know the risk factors that can affect the business operations and future prospects of the company. After evaluating the variables such strength weakness, financials, you may strike a balance and decide to invest or not invest in an IPO.
Competitive Strengths:
Leading in FTL transportation
CJ Darcl Logistics offers multimodal services across various verticals, including road/FTL transportation, rail/multimodal transportation, warehousing and distribution, integrated logistics solutions, and air cargo transportation.
With over 187 branch offices coving over 5000 locations and with 4,513 employees, DL Darcl is a leading in the full truck load (FTL) vertical work orders of FTL transportation totaling ₹ 38,575.59 million for fiscal 2024.
| Vertical | Revenue from operations attributable to vertical | ||
| Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |
| % | % | % | |
| FTL transportation | 77.95% | 77.82% | 81.75% |
| Rail/multimodal transportation | 15.60% | 14.89% | 11.91% |
| Warehousing & Distribution and
Integrated Logistics Solution |
5.28% | 5.63% | 4.51% |
| Shipping/ Coastal | 0.78% | 1.53% | 0.70% |
| Air cargo | 0.39% | 0.24% | 0.13% |
Asset Light Business Model
The company operates on an 'asset-right' business model helps them to reduce capex requirements, mitigates operational risks, and follows a diversified capital deployment, resulting in improved efficiencies.
Under asset light model assets like commercial vehicles and containers are owned or provided by a large network of business partners. As of March 31, 2023, the company had a network of 820,333 partnered fleets and 496,981 business partners. The company maintains a healthy vendor ecosystem, with 306,849 and 127,470 vendors with a relationship of over 5 years and 10 years, respectively.
Longstanding relationship
Over the years, the company has established longstanding relationships with clients and therefore offering customized logistics solutions to a diverse set of customers and industries. As can be seen from table below, numbers of repetitive clients are increasing year over year, contributing to a good chunk of revenue to company.
| Customer being
served for more than |
Fiscal 2023 | Fiscal 2022 | ||||
| Number of customers | Revenue | % of revenue from operation | Number of customers | Revenue | % of revenue from operation | |
| 3 years | 657 | 36929.79 | 87.60% | 582 | 29862.18 | 81.12% |
| 6 years | 351 | 31696.23 | 75.18% | 313 | 26566.54 | 72.16% |
| 9 years | 224 | 29123.58 | 69.08% | 208 | 24623.3 | 66.89% |
Well established promoter & management
The corporate promoter, CJ Logistics Corporation, who holds about 50%, share in business (As the date of DRHP) is listed on Korean exchange. The prompter group strengthens their capabilities and brings global competiveness to the business including packaged / e-commerce, improving sales approach and securing reliable delivery system.
Risks factors
Revenue concentration among clients
The company derives a significant portion of its revenue from its top 20 customers. Any loss of volume or loss of client among top 20 clients can adversely impact operations, financial condition and cash flows.
| Top customers | Revenue from operations attributable to customers | ||
| Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |
| Top 5 customers | 38.47% | 37.01% | 34.16% |
| Top 10 customers | 49.35% | 46.95% | 45.09% |
| Top 20 customers | 57.66% | 55.07% | 54.71% |
Dependent on the performance of specific industry
The company is dependent on the performance of specific industries in which its customers operate particularly metals and chemicals, both compromising 70% of their revenue stream. Any fluctuations in the performance of such industries or decrease in volume transported may result in a loss of such customers.
| Industry | Revenue from operations attributable to industry | ||
| Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |
| Metals & Mineral | 54.60% | 49.59% | 47.00% |
| Chemicals | 15.25% | 16.59% | 17.70% |
| FMCG | 7.90% | 9.45% | 10.93% |
| Engineering and construction | 2.85% | 2.78% | 3.16% |
| Auto and auto ancillary | 3.66% | 4.10% | 4.74% |
| Agriculture | 2.13% | 2.29% | 2.25% |
| Glass | 2.44% | 2.83% | 3.24% |
| Others | 11.17% | 12.37% | 10.69% |
Inability to expand new businesses
Expansion of freight corridors project proposed by the government can affect their business directly or indirectly over the long term. So company’ failure to diversify its revenue streams exposes it to risk of concentration of revenue from FTL transportation and Rail/multimodal transportation verticals. As can be seen from table below, majority of their revenue is sourced from FTL transportation.
| Industry | Revenue from operations attributable to industry | ||
| Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |
| FTL transportation | 77.95% | 77.72% | 82.75% |
| Rail/multimodal transportation | 15.60% | 14.89% | 11.91% |
| Warehousing & Distribution and
Integrated Logistics Solutions |
5.28% | 5.63% | 4.51% |
| Shipping/ Coastal | 0.78% | 1.53% | 0.70% |
| Air cargo | 0.39% | 0.24% | 0.13% |
CJ Darcl Logistics IPO Grey Market Premium
The CJ Darcl Logistics IPO GMP is not yet known as the IPO price is not disclosed. Once the IPO is open, the price will be disclosed and as per the demand and supply of the share price in the open market, the CJ Darcl Logistics IPO GMP will be known. If the IPO price is undervalued, less GMP and as per the valuation of the stock overvalued there is less chance for higher GMP.
How to Apply for CJ Darcl Logistics Limited IPO?
If you have a share trading and demat account at Moneysukh, you can easily apply for the CJ Darcl Logistics Limited IPO. Just follow the steps given below.
Step 1: Once CJ Darcl Logistics Limited IPO opens you can apply online.
Step 2: Browse at trade.moneysukh.com and log in with your Moneysukh User ID & password.
Step 3: Now you have to visit the IPO section and select CJ Darcl Logistics Limited IPO.
Step 4: Here just fill in the required such as bidding price, quantity or lot and so on.
Step 5: Now you have to make the payment and your IPO application is successful.
How to Check CJ Darcl Logistics Limited IPO Allotment Status?
Just like applying, checking the CJ Darcl Logistics Limited IPO Allotment Status is also very easy and hassle-free through Moneysukh online platform. You have to just wait till the IPO is closed and the allotment is finalized. If you have been allotted any share it will be transferred into your demat account that you can sell after listing of the shares on the NSE or BSE stock exchanges.
Also Read: How to Increase the Chances of IPO Allotment
However, if IPO is oversubscribed and unfortunately if you have not been allotted any share, your IPO application money will be returned to your bank account or linked account where you have allocated the fund while applying for the CJ Darcl Logistics IPO.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
