Aegis Logistics' JV Aegis Vopak Terminals Listing To Be Key Near-Term Catalyst: Motilal Oswal

Motilal Oswal Report

Aegis Logistics Ltd. has recently filed draft red herring prospectus with Securities and Exchange Board of India for the IPO of Aegis Vopak Terminals Ltd., a joint venture with Vopak.

In the conference call, management noted:

1. the IPO comprises a fresh issue of equity shares (face value Rs 10) of up to Rs 35 billion,

2. IPO proceeds will be used primarily to reduce debt, and

3. the equity issue will be in two phases and both partners will equally infuse equity.

In Q2 FY25, Aegis reported Ebitda of Rs 2.2 billion (up 8% YoY), missing our estimate by 17% as normalized Ebitda of Liquid/Gas divisions came in 19%/16% below our estimates. Management has re-iterated its PAT guidance of 25% CAGR over the next three years, primarily led by robust upcoming capacities.

Aegis also announced that capacity expansions at Mangalore and Pipavav are nearing completion and the greenfield expansion at JNPT is nearing commissioning.

We estimate a 13% CAGR in EPS over FY24-27E. However, the current valuations at FY26E PE of 36 times and price-to-book 5.6 times (FY26 ROE: 16.3%) are expensive.

Hence, we maintain our Neutral rating on the stock with a target price of Rs 795, based on 35 times Dec’26E EPS of Rs 22.7.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.