Aegis Logistics Stock Skyrockets 23% in Just 2 Days After Blazing Q4 Performance; Motilal Oswal Maintains Buy Rating
Aegis Logistics stock surged 9% to a new high on Monday after the company reported strong Q4 results for the quarter ending March 2024. This marks the second consecutive session of record highs for the stock, which has climbed 23% over these two days.
On Friday, the stock jumped 18.5% during the day to a high of ₹630.1 and closed 12.7% higher at ₹710.25. This recent surge means the stock has increased by 177% from its 52-week low of ₹280, recorded on November 3, 2023.
In the March quarter, Aegis Logistics’ profit after tax grew by 39.35% year-on-year to ₹196.29 crore, up from ₹140.86 crore in the same period last year. However, the company’s revenue from operations fell by 17.27% to ₹1,837.17 crore, down from ₹2,154.47 crore in the previous year’s March quarter.
The company reported better-than-expected earnings before interest, tax, depreciation, and amortisation (Ebitda) of ₹310 crore, a 51% year-on-year increase, largely driven by a 105% year-on-year growth in Ebit for its liquids division.
Aegis Logistics also announced a final dividend of 200%, or ₹2 per share, for the financial year ending March 31, 2024, subject to shareholder approval at the Annual General Meeting.
Additionally, the company revealed an ambitious capital expenditure plan. This includes commissioning 25,000 kiloliters (KL) at Kandla in FY25, full commissioning of 110,000 KL capacity at JNPT by FY25, 71,000 KL capacity becoming operational in FY25, and an additional 25,000 KL capacity at Kochi also in FY25. In the gas division, two cryogenic LPG projects at Pipavav and Mangalore are progressing on schedule and within budget.
For the full financial year 2023-24, Aegis Logistics’ net profit increased by 22.95% to ₹569.21 crore, up from ₹462.96 crore in the previous year. However, sales dropped by 18.33% to ₹7,045.92 crore from ₹8,627.21 crore in FY23.
After the earnings report, brokerage firm Motilal Oswal maintained its ‘buy’ recommendation on the stock with a target price of ₹670, suggesting a potential 13% downside. The brokerage sees a strong growth outlook for Aegis but notes that the stock is no longer cheap.
“While we expect a 17% compound annual growth rate (CAGR) over FY24-26, the current valuations at 32 times FY26 estimated earnings per share (EPS) already reflect the anticipated capacity and earnings expansion,” the brokerage noted.
Over the past year, Aegis Logistics’ stock has soared 99% and has risen more than 120% so far in 2024. In May, the stock advanced nearly 9%, marking gains for the fifth consecutive month. It also increased by 54% in April, 1.5% in March, 16.5% in February, and 7.3% in January 2024.
Aegis Logistics Limited and its subsidiaries operate primarily in India as a logistics company for oil, gas, and chemicals. The company has two main segments: the Liquid Terminal Division and the Gas Terminal Division. It manages a network of shore-based tank farms for bulk liquids, including hazardous chemicals, petroleum products, and petrochemicals. It also sources and distributes LPG and propane.
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