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Angel Broking neutral on Aegis Logistics
Angel Broking has downgraded its rating on Aegis Logistics from buy to neutral. The research firm estimates the company's top-line to register CAGR of 7.7% over FY2008-10E, while Margins would decline to 13.7%.
Angel Broking has downgraded its rating on Aegis Logistics from buy to neutral in its March 13, 2009 research report.
"Aegis's Autogas Division has failed to embark on fast paced growth as expected. Further, non-renewal of the RIL contract is expected to impact the company's overall Bottom-line going ahead. We estimate the company's Top-line to register CAGR of 7.7% over FY2008-10E, while Margins would decline to 13.7%. We estimate Bottom-line to de-grow 9.9% on a compounded basis in the mentioned period. Poor Revenue visibility and non-enthusing future Profitability overweigh its seemingly attractive valuations."
"Aegis expects to improve its business with existing customers (PSU oil companies) and handle new products, especially aviation turbine fuel (ATF). However, the ongoing slowdown has had a telling effect on most Sectors with the Manufacturing Sector being one of the worst hit. Aegis, which caters to the Manufacturing Sector, has also been at the receiving end. Hence, we downgrade the stock from Buy to Neutral," says Angel Broking's research report.
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To read the full report click on the attachment......
