Popular Vehicles & Services Limited (MAINBOARD)

Mar 12, 2024 - Mar 14, 2024

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Top 5 Anchor Details
Name of Anchor	No. of Shares	% Portion	Amount (cr)
HDFC TRUSTEE COMPANY LIMITED - HDFC TAX SAVERFUND	1505100	24.64%	44.40
QUANT MUTUAL FUND - QUANT MOMENTUM FUND	627150	10.27%	18.50
HSBC GLOBAL INVESTMENT FUNDS - ASIA EX JAPAN EQUITY SMALLER COMPANIES	610200	9.99%	18.00
QUANT MUTUAL FUND - QUANT CONSUMPTION FUND	508450	8.33%	14.99
HDFC TRUSTEE COMPANY LTD. A/C HDFC CAPITAL BUILDER VALUE FUND	501700	8.21%	14.80
Total	3752600	61.44%	110.69

Popular Vehicles and Services Limited, established in 1983, has emerged as a prominent player in the Indian automobile dealership sector, offering comprehensive services across various segments. With a robust network comprising 59 showrooms, 126 sales outlets, and booking offices, alongside 31 pre-owned vehicle showrooms and 134 authorized service centers, the company caters to the needs of customers in 14 districts of Kerala, 8 districts in Karnataka, 12 districts in Tamil Nadu, and 7 districts in Maharashtra. Beyond vehicle sales, Popular Vehicles excels in aftermarket services, including spare parts distribution, servicing, and even financial and insurance product sales. In FY 2023 alone, the company serviced over 791,000 vehicles through its authorized service centers, reflecting its commitment to customer satisfaction. Bolstered by a steady increase in profitability, as evidenced by its PAT growth from ₹324.55 million in Fiscal 2021 to ₹640.74 million in Fiscal 2023, and a substantial rise in total income over the same period, Popular Vehicles is poised for further expansion and success in the Indian automotive market.

Key Performance Indicator

Company Financials

Period	Sep 2023	Mar 2023	Mar 2022	Mar 2021
Assets	1941.78	1,503.78	1,263.29	1,118.94
Revenue	2848.21	4,892.63	3,484.20	2,919.25
Profit	40.04	64.07	33.67	32.46
Net Worth	384.21	343.04	279.89	246.00
Reserves	371.67	330.50	267.34	233.46
Borrowing	764.61	505.01	371.91	353.04
Amount in ₹ Crore

Strength Factors

Strong Relationships with Leading OEMs: The Company’s established presence in the automobile industry is bolstered by its long-standing relationships with leading Original Equipment Manufacturers (OEMs). These relationships provide stability and opportunities for collaboration and growth.

Effective Market Penetration and Innovative Marketing Strategies: The Company’s success is attributed to its effective penetration in the markets it operates in. This is complemented by innovative marketing strategies that help the company differentiate itself and capture market share effectively.

Integrated Business Model: The Company’s fully integrated business model contributes to its stability and higher margins. By controlling various aspects of the value chain, from manufacturing to distribution, the company can optimize processes, reduce costs, and maintain quality standards.

Agility in Identifying Growth Opportunities: The Company demonstrates agility in identifying and capitalizing on both organic and inorganic growth opportunities. This ability to adapt to changing market dynamics and seize opportunities for expansion contributes to sustained growth and competitiveness.

Consistent Profitable Financial Performance: The Company has a consistent track record of profitable financial performance, reflecting its ability to generate returns for shareholders and stakeholders. This consistency instills confidence in investors and supports the company's long-term sustainability.

Risk Factors

Economic Sensitivity: The automotive industry is highly sensitive to changes in economic conditions. Any downturn in the economy, such as a recession or economic instability, can lead to reduced consumer spending on vehicles, negatively impacting the company's sales and revenue.

Dependence on OEMs: The Company’s business is significantly influenced by Original Equipment Manufacturers (OEMs), and it operates under strict agreements with them. Any restrictions imposed by OEMs or changes in these agreements could adversely affect the company's ability to expand into new territories, acquire additional dealerships, and impact its overall business operations.

Regional Concentration: A large portion of the company's business operations are concentrated in specific states, such as Kerala, Tamil Nadu, and Karnataka. Any adverse developments, such as regulatory changes, political instability, or economic downturns, in these regions could have a significant adverse effect on the company's business, results of operations, and financial condition.

Dependence on OEM Programs: The Company’s vehicle sales are influenced by incentive, marketing, and other programs offered by OEMs. Any changes or discontinuation of these programs by OEMs could directly impact the company's sales volume, profit margins, and overall financial performance.

Competition and Market Dynamics: The automotive industry is highly competitive, with numerous players vying for market share. Intense competition, rapid technological advancements, and changing consumer preferences pose risks to the company's market position and profitability. Additionally, shifts in market trends, such as the rise of electric vehicles or autonomous driving technology, could disrupt the traditional automotive business model and pose challenges for the company.

Popular Vehicles & Services IPO Lead Manager(s)

• ICICI Securities Limited
• Nuvama Wealth Management Limited
• Centrum Capital Limited

FULL ANCHOR LIST CLICK HERE

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: popularvehicles.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html