Tiger Logistics


(Mute Spectator.) #81

This link not working …


(Bheeshma Sanghani) #82

Yes its not working. The link seems to have been made private. I have exited completely from tiger logistics due to discomfort with promoter actions which I felt were not shareholder friendly. Also an honest bear case needs to made when laying down a thesis, however bullish you are, to try and avoid confirmation bias. Falling in love is easy in a bull market - one needs to also know how to fall out of love.


(Tushar) #83

Logistics gets infra status, fund-raising to become easier - http://www.ecoti.in/GaQpGb


([email protected]) #84

Hi Bheeshma, can you please highlight the promoters action which lead to this decision, it would help fellow investors like me.

Disc : Invested


(Bheeshma Sanghani) #85

Hi @pandi.rao

constant management salary hikes which is anyways high to begin with,
small & decreasing net block indicating that mgt in not re-investing in hard assets,
lack of a qualified CFO ( I think the owners spouse is the CFO and she doesnt have the requisite qualifications) and
reporting good consistent growth of 20% - 25% quarter on quarter for a long time with increasing receivables.

The last one is a judgement call, but when the business of the clients it caters to is cyclical in nature I am not sure how the vendors business can show secular growth esp when its business is so tiny with cutthroat competition. After speaking to some people in the logistics industry - they confirmed that their business moves along with the ebb and flows in the business of their clients and bigger the client harder the negotiation. So the growth looked suspect to me. I couldnt locate the local tiger logistics office in Pune at the address mentioned. After a bit of searching i gave up. All in all , i could be wrong but all these flags caused discomfort and i changed my mind after eating a bit of humble pie.


([email protected]) #86

Thanks Bheeshma for the insights in highlighting the reasons behind it.
As I am a new to value investing for knowledge purpose can you explain a bit more on this line
small & decreasing net block indicating that mgt in not re-investing in hard assets,
I am not able to interpret the meaning behind this can you explain this in a more detail , your input will help me to see things more holistically not restricted only to TGL.

Thanks,
Pandi


(Ravindra Mutyala) #87

Agreed

It is the nature of the business, they don’t need hard assets to run the business, fixed asset turnovers are comparable with Mahindra logistics which is a big company in the sector.

Agreed

3rd party logistics companies can grow more than core Logistics companies as outsourcing the logistics services by customer companies is an increasing trend. Tiger logistics is like bucket of water in an ocean of logistics sector, moreover 3PL players don’t take market share from core logistic companies instead they just share the revenues with core logistic cos. Revenue growth rate in FY16 and FY17 is 3.1% and 17.6% respectively which is not very high. Revenue of Mahindra logistics itself has grown 29.8% in FY17%.

Regarding the receivable, I partially agreed that they are on the little higher side. However, it is not a big concern as Tiger logistics is successful in maintaining low debt levels. Incresing recievables with increasing debt is surely a concern which is not the case with Tiger logistics.


(Bheeshma Sanghani) #88

By growth I meant the earnings growth. Besides that, I agree with all the points you have mentioned. 3PL players have a self reinforcing business models but generally they have a fleet of their own. Wrt to tgl - 88% of its assets are receivables. That’s above and beyond what I would consider as comfortable -debt or no debt.

In fact in this scenario having Debt is actually very useful - at least they will collect something to pay the interest giving us investors a reassurance that nothing concerning is stashed away in the receivables.

I don’t mean to cast aspersions on the company. I may very well be over-reacting here and I hope I am. But 88% receivables requires a formidable level of conviction to hold.


(Ravindra Mutyala) #89

image

Extracted from Mahindra Logistics presentation.

3P Logistics growing at faster rate than core Logistics

Full presentation -> http://www.mahindralogistics.com/pdf/MLLPRESEN.PDF


(nitin.verma) #90


Today’s management interview. 2nd quarter was impacted due to gst , a full one month in July! Expecting to end the year with 350-360 cr of sales.


(Ravindra Mutyala) #91

http://katalystwealth.com/index.php/2017/11/28/latest-investment-report-young-very-fast-growing-company-with-attractive-valuations/

Though the name is not mentioned, all parameters matching with Tiger Logistics

As on 24th Nov stock was closed at 183.45 and Mcap is 193.95 Cr. Pre-tax earnings multiple is exactly 11.8 as mentioned in article

Disclosure: Invested, 6% of PF


(nitin.verma) #92

http://www.bseindia.com/xml-data/corpfiling/AttachLive/cec5d61b-8892-4a4f-98f0-990c57aca3bb.pdf
Tiger logistics signs an agreement with compass. Opens window for trade to multiple countries. Interesting.


(nkabra) #93

I was trying to compare a few logistics companies I have studied. Quite a few are overvalued is my thinking.

I analyzed Allcargo logistics and found it has better expansion capability, wider market reach and is quoting at almost the same price. Spoke to the senior management at Allcargo and was surprised by their honest opinion. I am trying to understand if Allcargo has got the right valuation from the market or am I missing something…
Comparing Tiger Logistics and Allcargo, I found Allcargo to be a better bet but the experts on this esteemed forum, please correct me here.


(Ravindra Mutyala) #94

Good to see Tiger logistics partnering with US-based logistics companies, as Mr.Harpreet mentioned in his interview about the foraying into Indo-US trade segment this can be termed as very good move to get the long-term contracts with new customers.


(nitin.verma) #95

Tiger logistics has posted a good set of numbers after a relatively benign Q2


Revenues up 17.6%, PAT up 37%. operating expenses seem to be gradually coming down slowly as company achieves scale. currently stand at 83% of revenues as compared to 85%, the previous quarter and 86% Q3’17. not sure how would they do a sales of 350cr for the full year though , as they had guided in their interview. That would mean a sales of 123 cr for the last quarter!!


(Dr. TarunDS) #96

Tiger Logistics wins “Logistics company of year”


(ramanhp) #97

Tiger Logistics features among the fastest growing companies - Outlook business April 2019.


(Ravindra Mutyala) #98

Mahindra Logisitcs results out

Top line up 28.1% to 3416cr
Bottom line up 40.4% to 64cr

Increase in receivables is 108cr which is almost double of net profit.


(manivannan.g) #99

(Ravindra Mutyala) #100

Decent results from Tiger logistics

Q4: Revenue up 8.3%, Net Profits up 24.7%
FY18: Revenue up 8.7%, Net Profit up 10.2%

Huge increase in employee expenses due management salaries, otherwise profit growth would have been 30%+

On the other hand huge increase in receivable.

Receivable increased is 1.5 times that of yearly net profit ( in case of Mahindra Logistics this is 2x)

Disclosure: Invested