AEGIS LOGISTICS - BUY

 

 

Aegis Logistics is one of the largest private sector chemical,gas and oil logistics company operating in India.Currently company having two liquid terminals in operation at Mumbai and one at Cochin and it is also starting  one more at Pipavav. Recently company started the civil works for its Pipavav facility and on completion of this the total liquid terminal capacity will reach close to 500000 KL.Under the Gas division ,company offering gas transportation for third parties,running Auto Gas retailing Stations and supplying  commercial LPG Cylinders.Aegis having a capacity to handle 750000 Mt of LPG per annum in its facilities. Presently company operating more than 90 auto gas filling stations ( Aegis Autogas)  across 7 states and planning to add another 30 in near future.Aegis already established direct pipeline connectivity with its major industrial customers and its year long experience in this field is very crucial and positive factor in an  industry like this where lot of procedures and formalities are required to get permission from government authorities to start with.In 2012 company started bunker fuels to ships and planning to introduce the same facility at more locations.For the past few quarters company’s financial performance negatively affected by hedging loss which is expected to end by the new financial year.Moreover , government's decision to restrict the supply of subsidised gas will boost the prospects of its various business divisions. Company having an uninterrupted dividend paying record for the past 10 years and reporting decent numbers. I believe .company’s decisions to expand its  capacity adding new offerings in its portfolio and changing government policies will auger well for Aegis once there is some improvement in the over all revival in our economy. Recommending a BUY on Aegis in a staggered manner with a long term view at  CMP or in any dip below CMP of Rs.125. 

Link to company website HERE

Link to latest AR HERE  

Disc : I have vested interest in A.L.L.