Reliance Industries
Rating: Subscribe: TVS Supply Chain operates an asset light business model and operates through leases with its network partners and clients. It has a long and consistent track record of successful integration of 20 acquisitions supplementing their operations to support capabilities and customer acquisition, said Reliance Securities with a 'subscribe' rating.The margin trend is improving YoY and expected to smoothen further as the company is focusing on the C3 framework – Customer, Capability and Country with outsourcing trend and presence in high growth sectors. The issue is priced at 10.5 times based on its NAV of Rs 18.89 as of 31 Mar 2023 and with good legacy parentage, tech enabled and process driven solution company.
Rating: Avoid: TVS Supply Chain Solutions is a leading multinational supply chain solutions provider with a strong track record in India. It has a strong domain expertise and knowledge base, as well as robust in-house technology differentiation. It has also been consistently successful in integrating and acquiring new businesses. However, there are some concerns with the company. It has a large exposure to the international market, which could be a risk if there is a slowdown in global trade. The company is also operating in a highly competitive industry, and it has reported losses in the past two years. The valuation of the IPO is very high, significantly above the industry average, it added with a 'avoid' tag.
