MOSL: AEGIS LOGISTICS (Buy)-Haldia LPG terminal ramp-up on track
Aegis Logistics: Haldia LPG terminal ramp-up on track
(AGIS IN, Mkt Cap USD1.1b, CMP INR230, TP INR280, 21% Upside, Buy)
- AGIS’ sales increased 48% YoY to INR18.5b in 4QFY19, exceeding our estimate by ~42%, primarily due to higher LPG sourcing (not a high-margin business). Despite higher sales, EBITDA of INR1b (+48% YoY) came in ~7% below our estimate due to higher cost. PAT increased 28% YoY to INR0.6b (our estimate: INR0.7b), primarily driven by a rise in Gas division volumes.
- For FY19, sales were up 17% YoY at INR56.2b, with EBITDA at INR3.7b (+39% YoY). PAT growth was relatively lower at 12% YoY (to INR2.2b) due to higher depreciation and interest costs.
Aegis Logistics Limited is a holding company, which is engaged in providing logistics and supply chain services to the oil, gas and chemical industry. The Company is engaged in the sale of liquefied petroleum gas (LPG), wholesale of solid, liquid and gaseous fuels and related products, and storage and warehousing of products, such as general merchandise warehouses and warehousing of furniture, automobiles, gas and oil, chemicals and textiles. Its segments include Liquid Terminal Division and Gas Terminal Division. The Liquid Terminal Division undertakes storage and terminaling facility of oil and chemical products. Its Gas Terminal Division relates to imports, storage and distribution of petroleum products, such as LPG and propane. It markets LPG packed in cylinders, which are used for domestic, commercial and industrial applications. It operates a network of filling plants, distribution points and dealers under the Aegis Puregas brand.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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