Business Standard

This logistic stock has zoomed 116% from March low; rallied 23% in 2 days

Shares of Aegis Logistics hit a new high of Rs 775.20, rallied 9 per cent on the BSE in Monday's intra-day trade amid heavy volumes.

oil and gas

SI Reporter Mumbai

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Shares of Aegis Logistics rallied 9 per cent to hit a new high of Rs 775.20 per share on the BSE in Monday’s intra-day trade amid heavy volumes. In the past two trading days, the stock of the logistics company has surged 23 per cent on a robust growth outlook. The market price of Aegis Logistics has more than doubled or zoomed 116 per cent from Rs 358.15 touched on March 13, 2024.

At 12:14 pm; the stock was trading 7.5 per cent higher at Rs 765.15, as compared to 0.58 per cent rise in the S&P BSE Sensex. The average trading volumes on the counter jumped over three-fold. A combined 4.67 million equity shares representing 1.33 per cent of total equity of the company changed hands on the NSE and BSE.

Aegis Logistics is India’s leading oil, gas and chemical logistics company. The oil, gas and chemical logistics business continues to show good potential as India’s import of oil products and chemicals increase in line with the growth of the Indian economy.

As the Government of India continues to encourage the use of liquefied petroleum gas (LPG) in lieu of other dirtier fuels such as kerosene, biomass and coal. The demand for LPG continues to increase and with it, the demand for import terminalling capacity. In this context, the medium and long term outlook for the group remains positive.

In March quarter (Q4FY24), Aegis Logistics reported better-than-expected earnings before interest, tax, depreciation, and amortisation (Ebitda) of Rs 310 crore, up 51 per cent year-on-year (YoY), mainly aided by strong Ebit growth of 105 per cent YoY for the liquids division.

Aegis Logistics has announced an ambitious capex plan for commissioning of 25,000 kilo litre (KL) at Kandla in FY25, the full commissioning of 110,000 KL capacity at JNPT by FY25, 71,000 KL capacity to be operational in FY25, and additional 25000 KL capacity to be operational in FY25 at Kochi. Moreover, in the gas division, two cryogenic LPG projects at Pipavav and Mangalore are progressing on time and within budget.

“While we estimate a 17 per cent CAGR over FY24-26, we believe that the current valuations at 32x FY26E EPS already factor in the strong expansion in capacity and earnings,” Motilal Oswal Financial Services said in the result update. The brokerage firm maintains its 'Neutral' rating on the stock.

Aegis Logistics will benefit from the ongoing capacity expansion plan to meet the rising import/export demand for liquid and LPG in India. The company commissioned the Kandla LPG project and obtained an additional liquid terminal in Kandla (post completion of the Vopak JV) in mid-2023 post which the terminalling and distribution volumes increased significantly in FY23 as well in FY24.

Furthermore, management expects the ongoing capex projects of around Rs 2,100 crore to be completed in FY25 which will increase its storage capacity.

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First Published: May 27 2024 | 1:18 PM IST

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