Shreeji Shipping Global, a flagship company of Jamnagar based Shreeji Group, promoted and led by Ashokumar Haridas Lal and Jitendra Haridas Lal, provides comprehensive shipping and logistic solutions for dry bulk cargo, including cargo handling and transportation services at various ports and jetties at India and Sri Lanka. Under its cargo handling segment, it provides STS (Ship to Ship) Lighterage, Stevedoring and other port services including cargo management services. And as part of logistic supply chain, it provides transportation services for dry bulk cargo including port to premise drop-off and vice versa. Further under fleet chartering and equipment rentals business, it primarily provides its vessels and earthmoving equipment on charter basis. It also provides the necessary equipment needed for loading and unloading of cargo.

As of March 31, 2025, it had a fleet of more than 83 vessels (consisting of 63 self-propelled barges, five mini bulk carriers (MBCs), eight tug boats and seven floating cranes) and more than 370 earthmoving equipment (consisting of 22 material handling machines, 66 excavators, 59 pay loaders, 192 tippers including trailers, 17 tankers and 20 other vehicles including foggers and tractors) in services of its clients. Five MBCs are with DWT of 2250 tonnes and have an average age of three years. They are designed for lightering and marine transportation of dry bulk commodities. The average age of barges and tugs are 15 years and 14 years, respectively.

Of the FY2025 operational revenue, cargo handling accounted for 79.39%, transportation 11.78%, fleet chartering & equipment rentals 7.8% and other operational income (comprise largely of sundry activity and sale of scrap) 1.03%.

The company handles a variety of dry bulk cargo including coal, clinker, salt, iron-ore, pet coke, sulphur, limestone and other commodities. While volume handled in FY25 and FY24 stood at 15.71 MMT and 13.78 MMT, the volume of cargo transported was 2.49 MMT and 2.74 MMT, respectively. Of the 15.71 MMT cargo handled in FY25, about 84.26% was coal, 4.09% was sulphur, 6.76% was pet coke, 1.61% was clinker, 1.37% was limestone and balance 1.91% was other including coal, gypsum and salt.

The company primarily caters to customers in various sectors including the Oil and Gas, Energy and Power, Fast Moving Consumer Goods (FMCG), Coal and Metal industries.

The company provides services at major ports but is focused on non-major ports and jetties, particularly along the West Coast of India. As of March 31, 2025, it had provided its services at more than 20 ports and jetties including major Indian ports at Kandla, non-major ports at Navlakhi, Magdalla, Bhavnagar, Bedi and Dharmatar and overseas port at Puttalam Port (Sri Lanka). Of the 15.71 MMT cargo handled in FY25 about 13.09 (or 83.27%) is from non-major Indian ports, 0.06 MMT (or 0.38%) from other Indian ports and jetties, excluding major ports, and 2.57 MMT (or 16.35%) from Sri Lankan ports.

In FY25, revenue from major ports was 0.36%, from non-major ports including private jetties was 91.61% and foreign ports was 6.99%.

The company received a Letter of Intent (LOI) for setting up floating crane facilities for cargo and container lightening/topping-up at Diamond Harbour and other deep draft locations under Syama Prasad Mookerjee Port, Kolkata, for 15 years.

The company in consortium with Nuravi Import & Export and GKR Infracon (India) (NEPL-SSGPL-GKR) accepted the Letter of Award (LoA) issued by Eastern Coalfields (ECL) on 1 January 2025, valued Rs 9476.33 crore, for mining 118.90 MMT of coal from Chuperbita-Simlong Opencast Project (Jharkhand) and 432.31 MCuM of overburden over a 25 year period, with a peak capacity of six MT/year, with a base mining charge set at Rs 797/tonne. The consortium has formed a Special Purpose Vehicle (SPV) and executed the Contract Agreement within 90 days of the LOA. Currently, the land acquisition process and Construction of the Coal Handling Plant are in progress.

The issue, Objects of the Issue

The issue comprises fresh equity shares numbering 16298000 of Rs 10 face value.

Of the net proceeds of the fresh issue, the company proposed to utilize Rs 251.179 crore for acquisition of Dry Bulk Carriers in the Supramax category in the secondary market and Rs 23 crore, towards pre-payment/ re-payment, in part or full, of certain outstanding borrowings availed by the company and balance for general corporate purposes.

Strengths

Prominent player in integrated shipping and logistic service industry in India, with a legacy of more than 3 decades providing value-added services at various stages in the logistics value chain such as cargo handling, customs clearance, storage management, stevedoring, and transportation, equipment rental.

Strong end to end capabilities with usage of its own fleet of vessels and heavy assets such as reach barges, mini bulk carriers, floating cranes, motor tugs, tippers, material handling machines and excavators facilitates loading, unloading and handling cargo, which improve its end-to-end capabilities.

Long-term institutional customer relationships in key sectors. The company as of March 31, 2025, had relationships of over five years with eight of its top 10 customers. Moreover, existing customers contributed 92.21% and 93.87% of revenue in FY25 and FY24, respectively.

West Coast ports, especially that in Gujrat & Maharashtra, have the advantage of a vast hinterland covering the Northern and Central Indian states backed by dedicated freight corridors providing steady demand for cargo handling services.

Weaknesses

Significantly dependent on dry bulk commodities such as coal and pet coke, the cargo volume of imports of these commodities depends on domestic supply demand and global commodity prices.

Faces significant competition from domestic and international shipping and logistic players which may lead to a reduction in its market share and financials. Further the business is subject to various risks inherent in the logistics industry.

Top 1/5/10 customers accounted for 20.86%/39.28%/64.12% of revenue in FY25. Thus, loss of any of these customers or shift of cargo by any customers to a port, which it was not present could impact the business operations of the company.

The ability to attract sufficient volume of cargo from its customers during a period to achieve desired margins will impact the profits of the company.

Dependence on Non-Major Ports may involve certain operational and regulatory risks that are different from those associated with Major Ports, which could adversely affect its business.

Some of the members of promoter group have not consented to the inclusion of, nor have they provided, information or any confirmations or undertakings pertaining to themselves or the entities in which they hold interest.

Exchange rate fluctuations may adversely affect its results of operations.

Yet to place order or concluded deal for acquisition of Dry Bulk Carriers in the Supramax category in the secondary market. The company has little prior experience in operating the Supramax category vessel in the international charter market.

Entry into certain related party transactions in the ordinary course of its business and cannot assure that such transactions will not adversely affect its business.

Most of the ports and jetties where the company offer cargo handling service are situated across the west coast of India and, thus, any major adverse development/cyclone affecting operations could impact the business.

Has a trademark application pending for its name and corporate logo.

International operations of the company are subject to legal and regulatory risks.

Conflicts of interest may arise out of common pursuits between the company and its Promoter Group/ Group Companies.

Valuation

Consolidated re-stated revenue stood lower by 17% to Rs 607.61 crore in FY25. Fall in revenue despite higher cargo volume handled in FY25 was largely due to one of the top 10 customer shifting its O&G cargo to their captive jetty, resulting in lower cargo handling revenue and reduced fleet chartering and equipment rental revenue due to increased number of geared vessels serviced, thereby reducing the demand for floating cranes that is required while servicing non-geared vessels.

However, with the OPM expanding by a strong 620 bps to 32.6%, OP was up by 3% to Rs 198.16 crore. The PBT was flat at Rs 167.08 crore. Eventually, net profit was higher by 14% to Rs 141.24 crore gained by EO income of Rs 21.82 crore as against nil in corresponding previous period.

The EPS for FY5 on expanded equity is Rs 7.7. The P/E at the upper price band works out to 32.7 times.The company quotes at a P/BV of 5.4 times.

There is no comparable listed peer that mirrors the operations of the company with presence in ligtering, stevedoring and other port related cargo handling services at major/minor ports. The nearest comparable listed player Sical Logistics reported a net loss for FY25 and Aspinwall & Company (also has presence in coffee and rubber plantation) reported an EPS of Rs 18.6 and quotes at PE of 14.6 times of its FY25 EPS.