Jayesh Logistics Ltd.

About Jayesh Logistics

Incorporated in 2011, Jayesh Logistics is a Kolkata-based logistics and supply chain services company. It provides road freight using owned and hired trucks, alongside non-freight services such as loading and unloading, truck-on-hire, customs clearance and machinery hire. It serves 200+ clients across steel, cement, infrastructure equipment and other heavy-industry segments. Its owned fleet comprises 95 heavy cargo trucks, and it is developing SMART-SYS, a logistics technology platform for fleet tracking, ERP integration and analytics.

Jayesh Logistics IPO Details

Use of Issue Proceeds

• Side wall trailers: INR 8.84 Cr. is allocated towards purchase of side wall trailers.
• Working capital: INR 11.23 Cr. is allocated for working capital.
• Smart Logistics App: INR 0.71 Cr. is allocated to implement phase 2.
• General Corporate Purposes: The amount is shown as [●] in the report.

Strengths

• Planned fleet expansion: The company plans to add 72 trucks to its existing fleet of 95, a 75% increase. The report notes the additional vehicles are expected after IPO funds are received.
• Growing non-freight contribution: Non-freight services made up 30.04% of FY25 revenue, up from 8.17% in FY23. The report notes that supervision services can generate margins of around 20%.
• Improving financial performance: Revenue increased from 60 Cr. in FY23 to 112 Cr. in FY25, while EBITDA rose from 4.8 Cr. to 16.9 Cr. over the same period.
• Broader industry mix: Iron and Steel declined to 38.76% of FY25 revenue from 58.54% in FY23; Infrastructure rose to 35.35% and Cement to 17.27%.
• Logistics sector tailwinds: The report cites the expected rise in organized players’ market share from 5.5-8% in FY22 to 12–15% by FY27, as well as government initiatives including PM Gati Shakti, Multi-Modal Logistics Parks and Dedicated Freight Corridors.

Jayesh Logistics Key Financials

Revenue, EBITDA and PAT increased across the reported years. Debt/Equity declined to 1.61x in FY25 after reaching 3.38x in FY24.

IPO Valuation and Our View

The IPO is valued at a P/E ratio of 14.72x based on FY25 PAT, which the report considers fairly in line with peers. The report notes that adding trucks will take ~3 months after IPO funds are received and expects substantial revenue growth from FY27. Minerva Capital Research Solutions recommends May Subscribe.

INR 116 to 122 per share

IPO price band

14.72x

P/E based on FY25 PAT

May Subscribe

Recommendation

Key Risks

• Regional concentration: The India-Nepal corridor is exposed to border frictions, policy changes and internal unrest. Nepal contributed 63.53% (71.07 Cr) of FY25 revenue.
• Fuel and transport costs: Fuel and transport cost volatility can compress margins.
• Customer concentration: The share of revenue from the top 10 customers increased from 48.2% in FY23 to 76.45% in FY25.
• Fleet expansion and revenue execution: No vehicles had been added to the fleet in FY26 as of the report. The company targets acquiring vehicles within 2 to 3 months after receiving IPO funds; the report says the RHP estimate of INR 218 Cr revenue in FY26 is unlikely without truck additions.

Business and Revenue Mix

Freight contributed 69.96% of FY25 revenue, with 34.80% from road-own fleet, 32.52% from hired fleet and 2.64% from Truck Forwarding Note. Non-freight services accounted for 30.04%. Nepal represented 63.53% of FY25 revenue and India 36.47%. The report attributes margin expansion to the shift toward owned trucks and a larger non-freight contribution.

• Order pattern: Orders declined from 1,007 in FY23 to 832 in FY25, while average revenue per order increased from 5.99 Lakhs to 13.45 Lakhs. Business is mainly secured through repeat, consignment-based orders rather than fixed rolling contracts.
• Fleet utilization: The report shows FY25 closing owned trucks of 95 and a utilization rate of 96.58%. It estimates a post-IPO fleet of 167* trucks after the planned addition of 72*.

Management

• Sanjay Kumar Kundaliya: Promoter, Chairman and Managing Director; the report states he has over 13 years in the logistics industry and has led the company’s operations since founding it.
• Navita Kundaliya: Promoter and Whole Time Director; she manages day-to-day operations, including resource allocation, team management, talent development and client engagement.

Our View

The report’s May Subscribe view rests on improving financials, the increasing non-freight share and planned fleet expansion. It also highlights Nepal exposure, rising customer concentration and uncertainty around the timing of new vehicles as material risks to delivery.

Standard disclosures

• Research Analyst has served as an officer, director or employee of subject company(ies): No
• We or our associates have received compensation from the subject company(ies) in the past 12 months: No
• We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past 12 months: No
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• We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
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• Nature of financial interest in subject company, if any –Nil
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Regulatory disclosures

Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).

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Rating rationale

Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.

• Buy:> 15%
• Hold: -5% to 15%
• Reduce: -15% to -5%
• Sell: <-15%