TLDR;
This YouTube video by Sunday Investing reviews three IPOs: Jayesh Logistics, GameChangers TexFab, and Orkla India (MTR brand). The hosts, discuss the financials, business models, and potential investment opportunities associated with each IPO, providing their personal opinions and recommendations. They emphasize the importance of individual research and caution against solely relying on their analysis.
- Jayesh Logistics: A logistics company focusing on road transport, particularly in the Indo-Nepal corridor.
- GameChangers TexFab: A B2B marketplace for fabrics, sourcing from various suppliers and catering to export houses and online marketplaces.
- Orkla India (MTR): A well-known Indian food company with a diverse range of products and iconic brands, undergoing an offer for sale (OFS).
Opening Remarks [0:00]
The video starts with a welcome to "Primary Market Chatter" by Sunday Investing, focusing on IPOs for the fourth week of October. After a Diwali break, the hosts are back to review three IPOs this week: two SME IPOs and one mainboard IPO. They plan to cover JS Logistics and Game Changers TexFab first, followed by Orkla India, which owns the MTR brand and has a market cap of ₹10,000 crore. The hosts clarify they are not SEBI registered and their opinions are not qualified, urging viewers to do their own research. They also mention their presence on Instagram and YouTube, encouraging viewers to join their channels.
Jayesh Logistics (SME) [2:49]
Jayesh Logistics, established in 2011, is a Kolkata-based logistics company specializing in road transport of bulk cargo, including liquids and solids. They primarily serve the iron, steel, and cement industries, operating around 95 owned vehicles with over 90% utilization. In FY25, they completed over 4,000 trips, mainly between West Bengal, Chhattisgarh, Odisha, and Nepal. 90% of their revenue comes from freight operations, with 50% from owned vehicles and the rest from supervisory logistics. A significant portion of their revenue (90%) is from routes to Nepal, which has increased from 68% two years prior. Financials show revenue growth from ₹60 crore in FY23 to ₹112 crore in FY25, with improved EBITDA and PAT margins. The IPO aims to use ₹8 crore to purchase new trucks and trailers (assembling parts with additional debt), ₹16 crore for working capital, and ₹3 crore for developing an in-house logistics app. Priced at 15 times earnings, the company's peers have better valuations. The lead manager is Endcap, whose previous IPO had an unusual structure and performed poorly. The host expresses a lack of interest due to the logistics sector's erratic price action and the company's valuation.
GameChangers TexFab (SME) [10:04]
GameChangers TexFab, established in 2015, operates in the textile segment with its brand Trade Uno. They source textiles from 450-500 suppliers across India, with tie-ups in Singapore and China, and supply to B2B export houses and online marketplaces. They also sell technical textiles and have their own brand, Fall in Love. They have 10-12 sourcing offices across India and experience centers for B2B clients to view textiles. Their portfolio includes 10,000+ SKUs, including organic and recycled fabrics. 85% of their revenue comes from B2B, 13% from B2C and online marketplaces, and the rest from technical textiles and their own brand. 20% of their revenue is from exports, including the USA, but they are trying to diversify to Europe to avoid tariffs. Financials show revenue of ₹100 crore in FY23, ₹98 crore in FY24, and ₹115 crore in FY25, with improved EBITDA and PAT margins. Q1 FY26 shows further improvement in margins. The company is targeting 30-35% growth by increasing its share in B2C and technical textile segments. The IPO aims to use ₹15 crore to create new stores and experience centers and ₹26 crore for working capital. The IPO is priced at 15 times FY25 earnings. The lead manager is Cop, with a not-so-good record. The host would personally avoid this one.
Orkla India (Mainboard) [19:39]
Orkla India, formerly MTR Foods, is a Bengaluru-based food products company with brands like MTR, Eastern Condiments, Rasoi Magic, and Work and Roll. Started 100 years ago by a South Indian family, it was acquired in 2008 by Norwegian MNC Orkla ASA. In 2021, they acquired Eastern Condiments, a leading spices manufacturer. Eastern Condiments has a significant market share in Kerala and Karnataka and is a major exporter of spices. The company has a wide distribution network across India. The IPO is a ₹1,667 crore offer for sale (OFS). The company is an FMCG company with good cash flow generation. Before the IPO, a dividend was given to the parent company. Eastern Condiments' facilities are running at 40% utilization, while MTR's is at 75-80%. Rasoi Magic contributes a small percentage to the revenue. In FY24, revenue was ₹2,356 crore with a PAT of ₹226 crore. Volume growth is a key metric for FMCG companies. In FY25, revenue was ₹2,395 crore with a PAT of ₹255 crore and a volume growth of 3.5%. Q1 numbers show a good bounce back in volumes. The company is priced at around 33 times P/E based on FY26 estimates and 20-23 times EV/EBITDA. The host believes the company is priced decently and can be applied for, expecting a small listing gain and good long-term investment potential. The anchor book is expected to be good, and there are no major litigations. The company focuses on being a regional player, tapping into micro-markets.
Closing Remarks [37:58]
The hosts conclude the session, summarizing the IPOs covered: Orkla India (MTR), Jayesh Logistics and GameChangers TexFab. They mention upcoming mainboard IPOs in the following weeks and express their intention to cover them. They thank everyone for joining and bid farewell.