Foreign brokerage firm UBS sees a 42 percent rally in shares of Aegis Logistics and, accordingly, set the target price at Rs 480 on the stock with a 'buy' rating.
The Aegis stock opened more than 1 percent higher on Monday at Rs 338.10 but failed to sustain early gains. At 10:14am, the stock was trading flat at Rs 333.50 with volumes of 17,403 shares. Its five-day average was 94,242 shares, which marks a decrease of 81.5 percent in volume.
UBS, however, believes that the medium to long term outlook for growth of Aegis Logistics remains intact.
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UBS has observed that the recent capacity expansion has led to a steady pick-up in LPG terminalling volume. It expects this positive trend to continue in the near-term, along with improvement in utilisation. Additionally, UBS notes that Aegis Logistics has undertaken significant capacity expansion in both its LPG and liquids businesses, indicating a substantial investment in handling larger volumes of these products.
The company’s consolidated revenue from operations came in at Rs 2,154.47 crore during the quarter ended March as against Rs 2,103.58 crore reported a year ago. Its quarterly net profit surged 49 percent YoY to Rs 140.86 crore and EBITDA jumped 70 percent to Rs 266.20 crore.
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