Motilal Oswal's research report on Aegis Logistics
Aegis Logistics (AGIS) reported EBITDA of INR3.1b in 4QFY24, 28% above our estimates and up 51% YoY, mainly aided by strong EBIT growth of 105% YoY for the liquids division.AGIS announced the addition of a specialized storage terminal of 36KT with an investment of INR5b for ammonia in Gujarat by FY26 end. This is besides the ongoing aggressive capacity expansion in the liquids and gas divisions.We estimate a 17% CAGR in EPS over FY24-26. However, the current valuations at FY26E PE of 32x and PB of 5.2x (FY26 ROE: 17%) are no longer inexpensive. Hence, we maintain our Neutral rating on stock with a TP of INR670, based on 30x FY26E EPS of INR22.
Outlook
we believe that the current valuations at 32x FY26E EPS already factor in the strong expansion in capacity and earnings. We value the stock at 30x FY26E EPS of INR22.2 to arrive at our TP of INR670. We maintain our Neutral rating on the stock
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