IPO closes on 3 Oct'25
Om Freight Forwarders Ltd
Minimum Investment
₹ 14,985 / 111 shares
Our Verdict:
Avoid
- Om Freight Forwarders Ltd (OFFL) has delivered impressive growth in FY25, with PAT growing 112% YoY. However, profitability still lags behind FY23 levels, highlighting the inconsistency in financial performance.
- Additionally, return ratios such as RoE and RoCE remain volatile, reflecting cyclical exposure rather than steady operational strength.
- On the valuation front, the issue appears fully priced at a P/E of ~20x.
- Moreover, 80% of the offer is an Offer for Sale (OFS), with only 20% of proceeds earmarked for expansion, limiting tangible growth benefits for the company.
- Added to this are structural concerns—high client and geographic concentration, heavy reliance on third-party service providers and the highly competitive, fragmented nature of the logistics market. These factors amplify execution risks and raise questions on sustainability of the recent rebound.
- Overall, the risk–reward balance appears unfavourable at this stage. It would be prudent for investors to stay on the sidelines and reassess the company once it demonstrates sustained business performance over the coming quarters.
About the company
Founded in
16 Jun'95
Managing director
Rahul Joshi
- OFFL provides a wide range of third-party logistics (3PL) integrated services including international freight forwarding, customs clearance, vessel agency services, multimodal transportation, warehousing and distribution. As a multimodal transport operator, it provides seamless end-to-end freight solutions for exporting and importing cargo via sea, road, rail and air.
- Currently, its fleet includes 135 owned commercial vehicles and equipment. In addition, it has 22 logistics partners to provide vehicles and other essential assets and services.
STRENGTHS
- Extensive Network: OFFL has a strong pan-India presence with 28 branches and connects to 800+ global destinations. Its owned fleet of 135 vehicles, supported by specialized equipment, provides better control, reliability and execution efficiency.
- Strong Rebound in FY25: After a challenging FY24, OFFL delivered a significant recovery in FY25. Net profit more than doubled from Rs 10.34 crore to Rs 21.99 crore, showcasing operational improvements and stronger financial resilience.
- Customer Loyalty & Stickiness: Long-term relationships remain a key strength—five of the top 10 customers have been associated for over five years. In FY25, the company served 1,715 clients, with 802 repeat customers contributing 75.34% of operational revenue.
RISK FACTORS
- Inconsistent Financials: While OFFL rebounded in FY25 after a weak FY24, profitability has not yet reached FY23 levels. PAT margins followed a similar volatile trend, indicating earnings sustainability remains a challenge.
- Client Concentration: A substantial share of revenue is derived from a small set of clients. In FY25, the top 1/5/10 customers contributed 11.60% / 26.71% / 40.39% of operational revenue. The loss or reduced business from any of these clients could materially affect financial performance.
- Intense Competition: The logistics industry is highly fragmented, with a large number of unorganized players competing on price. OFFL also faces pressure from larger integrated logistics providers with broader service offerings.
- Geographic Dependence: Approximately 85% of FY25 revenue was generated from customers in Maharashtra. Adverse developments in this region—such as economic slowdowns, political instability, or natural calamities—pose significant concentration risk.
- Reliance on Third-Party Service Providers: Around 52% of transportation requirements over the past three fiscal years have been fulfilled by third-party vendors. Any disruption, poor service quality or loss of these relationships could hinder operations and service delivery.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 122.31 crore
Fresh Issue
₹ 24.44 crore
OFS
₹ 97.88 crore
Price range
₹ 128 - 135
Lot size
114 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Purchase of commercial vehicles and heavy equipment; and
- General corporate purposes.
Dates
Bidding open
29 Sep'25
Bidding close
3 Oct'25
Allotment date
6 Oct'25
Refund date
7 Oct'25
Listing
8 Oct'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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