Aegis Logistics hit a new 52-week high of Rs 364.70 on June 1 and leaped to a record high of Rs 374.80 on June 2. The organization however posted quieted results for the March quarter on May 27, experts following the organization are perky. The stock has energized around 18% in May, 40% so far in 2021, and more than 100% since June 1, 2020.
Aegis Logistics (AGIS) is a main gas coordinations major part in India with two principle divisions – gas and fluids. While the gas division is its principle development driver, the fluids division furnishes the organization with consistent incomes, said specialists who track the organization.
Regardless of quieted March quarter results and the effect of lockdowns forced by different states, Aegis keeps on leftover a favored play given the expanding LPG infiltration in the country.
The public authority's obligation to cleaner energizes, net money on the organization's accounting report, solid profit from value (RoE), limit extension, and key presence at key ports are a portion of the components that make the organization a favored bet.
Specialists see further potential gain in the stock towards Rs 450-500 from the current Rs 351 - a potential gain of another 40%.
The organization announced a 10 percent QoQ fall in the solidified net benefit to Rs 70 crore for the quarter finished March, contrasted with Rs 78 crore in the past quarter, however the number rose more than 30% on a YoY premise.
The organization announced a barely feeble supreme EBIDTA of Rs 128.3 crore (from Rs 135.2 crore yoy). EBIDTA edge was solid during the quarter at 12.7% fundamentally because of low sourcing volumes and endeavors taken by the organization to diminish cost.
Coronavirus kept on affecting LPG sourcing and LPG terminal section in the March quarter. Generally speaking, Aegis revealed a - 18.6% YoY decrease in income to Rs 1011.2 crore which constrained specialists to cut the profit gauges. Be that as it may, they say the drawn out story is unblemished regardless of close term headwinds.
"With feeble Q4FY21, continuous second Covid wave, likelihood of the third wave in H2CY21 and worries over prompt recuperation, we cut FY22 income by 2.8%," Kotak Securities said in a note.
"We keep on accepting that Aegis which catches the total coordinations esteem chain beginning from sourcing, terminalling to retail dispersion of LPG, would profit by expanding LPG entrance in the country," it said.
The financier firm keeps an 'Add' rating with an expanded objective of Rs 405 (from Rs 320) at 30x FY23E income, in light of a solid recuperation in FY23 and improved business possibilities.
Edelweiss Wealth Research toward the beginning of May imitated inclusion on Aegis Logistics with a 'Purchase' rating and target cost of Rs 416 for every offer.
"We trust Aegis is an intensifying play on the import-drove development in homegrown LPG utilization. We anticipate that the company should convey 32% PAT CAGR over FY21-24E, driven by the consummation of major capex and developing portion of the overall industry," clarifies the business note.
The business firm remaining parts positive on AGIS because of its (a) net-cash monetary record, (b) solid RoE age, (c) LPG throughput limit increment of 1.9x in 1H22E, and (d) key presence at key ports.
Specialized Picture:
In fact, the stock has shaped a multi-year adjusting base example on the week by week outlines between Rs 300 and Rs 160 odd levels. Since March'20 low, the stock has been framing a higher top and high base on the week by week graph and post-breakout it is presently exchanging at record-breaking significant levels, noted Ashish Chaturmohta, Head of Derivatives and Technical Analysis, Sanctum Wealth Management.
Volumes have been high demonstrating purchasing support in the stock. The Moving normal union uniqueness has additionally given positive hybrid with its normal on the week after week outline.
The Stock can be purchased at current degrees of Rs 360 and on plunges to Rs 345 with a stop misfortune at Rs 325 for an objective of Rs 450 and Rs 500 in the coming 6-9 months, said Chaturmohta.
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