VRL Logistics & Navkar Corporation

Financial, Valuation, Business & Management Analysis

Atukuri SandeepKrishna
Karan Vashee
 Background
 Year of Incorporation – 1983
 Headquarters – Hubli
 The largest fleet owner of commercial vehicles in India with a fleet
of 4360 Vehicles (Including 419 Passenger Transport Vehicles &
3941 Goods Transport Vehicles amongst others).
 Over the years, VRL has pioneered in providing delivery network in
the field of parcel service &has spread its operations to Courier
 Year of Incorporation – 2011
 Headquarters – Mumbai
 Navkar logistics is a CFS operator
 The companies services includes packing, labelling/bar coding,
palletising, fumigation and other warehouse facilities.
 The company works with shipping lines and customs house
agents (Eg. United Arab shipping agency company and many
more)

Service, Priority Cargo & Air Chartering.

 Shantilal J Mehta (Chairman And Managing Director
 3PL & Warehousing solutions offered by VRL are tailor-made and
 Jayesh Nemichand Mehta (Whole-time Director)
cater to unique needs of its diverse customer base.  Dinesh Gautama (Executive Director)
 Lalit Menghnani (Director)
 Vijay Sankeshwar (Chairman And Managing Director)
 Rameshchandra Meghraj Purohit (Director)
 Anand Sankeshwar (Managing Director)
 C Karunakara Shetty (Independent Director)
 J S Korlahalli (Independent Director)
 Prabhakar Kore (Independent Director)
 Financial Analysis Valuation Analysis

VRL Navkar VRL Navkar

Logistics Corp Logistics Corp
Sales growth Both the Companies are having decent growth in their Sales,
(2013-2017) 6% 2% considering last 5 years P/E 45.26 32.13
Profitability(N Navkar Corp is having better Net Profit Margin than VRL
PM) 4% 23% Logistics P/E to growth ratio 65.6 37.4

Tax Payout 33% 12% tax structure for VRL is as per general corporate tax. Earning Yield 0.02 0.03
Interest
P/B ratio 5.25 1.73
Coverage 9% 5%
Debt to equity VRL is having better debt to equity ratio, logistic sector has Price to Sales ratio 1.57 6.78
ratio 0.42 0.54 average debt to equity as 0.43
Dividend Yield 1.11 0
Current Ratio 0.80 1.00
Both the companies are having Positive Operating cash flows, both
Cash flow 197.98 104.91 companies CFO is meeting CFI, CFF
Cum Cash
flow(5 years) 1060.8 489.3
Cum PAT (5
years) 368.64 386.29
 Shareholding Pattern & Credit
Rating

BBB+ A+

PAT 70.47 104.24 91.22 57.01 PAT 85.6 85.53

change in PAT -32% 14% 60% 25% Change in PAT 0% 25%
Salary 3.59 3.88 3.28 2.98 Salary 0.8 0.65
change in salary -7% 18% 10% 6% Change in Salary 23% 0%
 Business & Industry Analysis
Industry peers sales CAGR
VRL container corp. 5.32
Logistics Navkar Corp blue dart 3.77
Comparison with industry peers sales> peers sales<peers all cargo 5.38

Conversion of sales growth into profits  VRL is having better Sales CAGR than its Peers, whereas
Navkar is having less than Peers.
1. Profit CAGR 9.05% 8.58%
2.Sales CAGR 6% 2% With Implementation of GST, there is boost for LTL and
Conversion of sales growth into cash VRL is market leader in LTL.
1.cPAT 368.64 386.29
 Navkar is not paying any Dividend, whereas VRL is
2.cCashflow 1060.8 489.3 having Dividend Payout Ratio of 51.78%
Creation of value of shareholders
1.Mcap CAGR 6.45% 14.81%
2.Retained earnings CAGR 3.23% 7.26%