WTI Cabs IPO Financial Analysis

WTI Cabs began its journey on 22 April 2009. Operating under the name WTi Cabs, it's a one stop travel solution company with expertise in various aspects of travel, it's managed by a team of professionals dedicated to delivering quality services across different travel verticals. WTI Cabs is set to launch its IPO on 12 February 2024. Here's a summary of the company's business model, strengths, risks and financials to assist investors in making informed decisions.

WTI Cabs IPO Overview

Wise Travel India Ltd (WTI Cabs), founded in 2009, specializes in transport services and car rentals primarily aimed at corporate clients and bulk orders. It operates in 130 cities across India offering a range of services including employee transportation, monthly rental plans, airport transfers, fleet management and mobility tech solutions. Its fleet includes executive cars, sedans, luxury cars, SUVs and coaches.

WTI Cabs serves key first and second tier metros like Delhi, Mumbai, Pune, Hyderabad, Bengaluru, Chennai and Kolkata. Some of its notable clients include Nokia, Amazon, Microsoft, Coca-Cola and American Express.

WTI Cabs IPO Strengths

1- Operates on a scalable business model characterized by its order-driven approach and efficient utilization of existing resources.

2- Has built a strong reputation through its consistent service quality, leading to successful client retention.

3- The company has experienced Promoters and Team.

WTI Cabs IPO Risk

1- The company has faced financial challenges in the past with negative cash flow.

2- Tough competition in the cab service industry may lead to lower prices, impacting the company's ability to retain clients and ultimately reducing its profits and revenue.

3- If there are any negative changes in the regulations affecting the company and its clients, it could affect the company's future business and financial performance.

4- The company faces competition from both local and international markets and if it can't keep up, it could hurt its business and financial performance.

WTI Cabs IPO Details

WTI Cabs IPO is scheduled from 12 to 14 February 2024. It has a face value of ₹10 per share and the IPO's price range is ₹140-147 per share.

Financial Performance of WTI Cabs IPO

WTI Cabs' Profit After Tax (PAT) showed growth over the years: ₹172.85 Lakhs in 2021, ₹377.74 Lakhs in 2022 and ₹1,029.36 Lakhs in 2023 indicates an increase in profitability over this period reflecting the company's improving financial performance.

WTI Cabs IPO Key Ratios

WTI Cabs saw its Return on Equity (ROE) rise from 7.25% in FY21 to 13.24% in FY22, and further to 25.28% in FY23, indicating improving profitability relative to shareholder equity over the three years.

WTI Cabs Vs Peers

Wise Travel India Limited, Shree Osfm E-mobility Limited and Mahindra Logistics Ltd are three notable companies in India. Wise Travel focuses on innovative solutions has EPS of 5.93%. Shree Osfm is a player in electric mobility with EPS of 2.94%. Mahindra Logistics with highest EPS of 8.97%

Promoters of WTI Cabs

1. Mr. Ashok Vashist

2. Ms. Hema Bisht

3. Mr. Vivek Laroia

The company was promoted by Ashok Vashist, Hema Bisht and Vivek Laroia, who currently hold a combined ownership stake of 95.63%. However with the introduction of new shares through the IPO their ownership will decrease to 69.76%.

Final Words

This article takes a closer look into WTI Cabs IPO, scheduled for subscription from 12 February 2024.