Neutral on Aegis Logistics, target price Rs 375: Motilal Oswal

Motilal Oswal has neutral call on Aegis Logistics with a target price of Rs 375. The current market price of is Rs 350.85. Time period given by analyst is one year when Aegis Logistics Ltd. price can reach defined target.

Aegis Logistics Ltd., incorporated in the year 1956, is a Mid Cap company (having a market cap of Rs 12285.00 Crore) operating in Logistics sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1026.08 Crore, down -34.05 % from last quarter Total Income of Rs 1555.89 Crore and down -18.64 % from last year same quarter Total Income of Rs 1261.12 Crore. Company reported net profit after tax of Rs 69.98 Crore in latest quarter.

Investment Rationale
The company is trading at 21x FY22E EV/EBITDA. It values the company using DCF and arrive at a TP of INR375. However, a stretched balance sheet due to INR25-45b capex and change of focus away from LPG is likely to raise uncertainty over earnings.

Promoter/FII Holdings
Promoters held 57.7 per cent stake in the company as of March 31, 2021, while FIIs held 14.8 per cent, DIIs 2.3 per cent and public and others 25.2 per cent.