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VRL Logistics & Navkar Corporation: Financial, Valuation, Business & Management Analysis

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Karan Vashee

VRL Logistics and Navkar Corporation are logistics companies incorporated in 1983 and 2011 respectively. VRL has a large fleet of commercial vehicles and provides parcel, courier, and air cargo services. Navkar operates a container freight station and provides warehousing and packaging services. A financial analysis found that Navkar has higher profit margins while VRL has a better debt-to-equity ratio. Both companies have positive cash flows and cumulative profits. An industry analysis showed VRL has higher sales growth than peers while Navkar's growth is below peers.

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VRL Logistics & Navkar Corporation: Financial, Valuation, Business & Management Analysis

Uploaded by

Karan Vashee
120 views5 pages
VRL Logistics and Navkar Corporation are logistics companies incorporated in 1983 and 2011 respectively. VRL has a large fleet of commercial vehicles and provides parcel, courier, and air cargo services. Navkar operates a container freight station and provides warehousing and packaging services. A financial analysis found that Navkar has higher profit margins while VRL has a better debt-to-equity ratio. Both companies have positive cash flows and cumulative profits. An industry analysis showed VRL has higher sales growth than peers while Navkar's growth is below peers.

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sh market company comparision vrl and navkar

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VRL & Navkar

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VRL Logistics and Navkar Corporation are logistics companies incorporated in 1983 and 2011 respectively. VRL has a large fleet of commercial vehicles and provides parcel, courier, and air cargo services. Navkar operates a container freight station and provides warehousing and packaging services. A financial analysis found that Navkar has higher profit margins while VRL has a better debt-to-equity ratio. Both companies have positive cash flows and cumulative profits. An industry analysis showed VRL has higher sales growth than peers while Navkar's growth is below peers.

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© All Rights Reserved
Download as PPTX, PDF, TXT or read online from Scribd
Download as pptx, pdf, or txt
120 views5 pages

VRL Logistics & Navkar Corporation: Financial, Valuation, Business & Management Analysis

Uploaded by

Karan Vashee
VRL Logistics and Navkar Corporation are logistics companies incorporated in 1983 and 2011 respectively. VRL has a large fleet of commercial vehicles and provides parcel, courier, and air cargo services. Navkar operates a container freight station and provides warehousing and packaging services. A financial analysis found that Navkar has higher profit margins while VRL has a better debt-to-equity ratio. Both companies have positive cash flows and cumulative profits. An industry analysis showed VRL has higher sales growth than peers while Navkar's growth is below peers.

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VRL Logistics & Navkar Corporation

Financial, Valuation, Business & Management Analysis

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

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%

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