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.
