Shares of Aegis Logistics have delivered over 2,300 per cent return to its long-term investors in the last 10 years. The multibagger stock is up over 54 per cent in the last 12 months. It has recovered over 74 per cent from its 52-week low of Rs 197.75, hit on June 20, 2022.
Nomura, in its recent report, said that the growth outlook remains robust for Aegis Logistics. It has a 'Buy' rating on the midcap stock with a target price of Rs 462, suggesting an upside potential of about 35 per cent from Friday's closing price of Rs 343.95.
It noted that Saudi Aramco has cut LPG prices by USD105/t in Jun’23. With the recent reduction in international LPG prices, the discount fo LPG prices to PNG prices is likely to widen to 20 per cent. Therefore, we expect distribution volumes to remain strong in the near term, it said.
Nomura added that the trend of substitution of natural gas with LPG has continued and has driven strong growth in bulk volumes. Aegis is constructing a new liquids terminal at the JNPT port with a capacity of 110 million litres. Capacity expansion of 50kl at Haldia is now complete and management expects to commission 70kl of expansion at Mangalore by the end of FY24. Management noted that the EBITDA margin for the liquids division was weak in 4QFY23 due to an adverse mix. It expects margins to expand with the improvement in product mix for Kandla terminal, it said.
"We cut our estimates for logistics volumes by 525kt each for FY24F/FY25F. We raise our distribution volume estimates to 600kt/600kt for FY24F/FY25F from 480kt/504kt earlier. Our overall EBITDA estimates for FY24F/FY25F are down only marginally by 3% each for FY24F/FY25F as the rise in our expected distribution volume estimates offset our lowered logistics volume estimates," it said in its report.
The company's net profit surged 49 per cent to Rs 140.8 crore for the quarter ended March 2023 against 94.75 crore during the quarter ended March 2022. It posted revenue from operations of Rs 2,154 crore, up 2 per cent from Rs 2,103.5 crore in Q4FY22.
The Board of Directors approved “Recommendation of Final dividend @ 125% i.e. Rs. 1.25/- per share (face value of Re.1 each) for the financial year ended March 31, 2023, subject to the approval of members at the Annual General Meeting," said Aegis Logistics in a stock exchange filing.
Aegis Logistics is an integrated Oil, Gas and Chemical Logistics company and one of India’s Importers and Handlers of LPG amongst private players. The company operates through its state-of-the-art Necklace of Liquid and Gas terminals across major ports of India having a storage capacity of 15,70,000 KL for Chemicals and POL and 1,14,000 MT of static capacity for LPG.
Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.