KRChoksey Research has recommended a buy rating on Aegis Logistics with a target of Rs 96 in its November 17, 2008 research report. "Net sales increased 42.5% y-o-y to Rs 130.9 crore driven by strong growth in both gas (47.6%) and liquid logistics (18.0%) divisions. Net profit dipped 13.0% y-o-y to Rs 7.8 crore."
"In the long run, we firmly believe that the key upside to Aegis' story is its Auto Gas business, which is likely to be driven by the company's strong expansion plan and increasing price differential between Auto LPG, with respect to diesel and petrol. At CMP of Rs 67, the stock is trading at 3.2x on FY09E EPS of Rs 20.7. We recommend a BUY on this stock with target price of Rs 96, which represents an upside potential of 43.3%," says KRChoksey's research report.
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