Muhurat Pick: This Mid Cap Logistics Stock Is Top Pick By Kotak Securities, Buy For 13% Gains

Aegis Logistics Ltd. (Aegis) is among the top Picks in the Kotak Securities' Fundamental Muhurat Picks-Samvat 2079. The brokerage has given a buy call to the stock for potential gains of up to 13% in 12 months with a target price of Rs 330 per share. Aegis is a mid-cap Logistics Sector company having a market price of Rs 10,326.42 crore.

Aegis Logistics Ltd. is India's leading integrated Oil, Gas & Chemical Logistics company and one of India's top Importers and Handlers of LPG among private players. The company operates through its state-of-the-art Necklace of Liquid & Gas terminals across major ports of India having a storage capacity of 15,70,000 KL for Chemicals & POL and 1,14,000 MT of static capacity for LPG.

Stock Outlook & Returns Over The Years

The last traded share price of Aegis Logistics on NSE is Rs 294.20 per share, down 2.58% as compared to its previous close. On NSE, the stock's 52 week low level is Rs 167.25 and the 52 week high is Rs 308, respectively. Its ROE is 16.40% and the debt-to-equity ratio is 0.18. 

The stock the previous week gained 7.04%. Whereas, in the past 1 and 3 months it gained 5.52% and 20.25%, respectively. Over the past 1 year, the stock has given 39.37% positive returns on investments. It has given 73.52% positive returns in 3 years, whereas, in the past 5 years it has given 31.84% positive returns.

Investment Argument

Performance of Aegis was in line with expectation in Q1FY23 with re-opening of the economy and rebound in economic activities.

"We believe that Aegis, which captures the complete logistics value chain starting from sourcing, terminalling to retail distribution of LPG, would benefit from increasing LPG penetration. We estimate the liquid division of Aegis to remain stable over FY22-24E," the brokerage has said.

Aegis Vopak Terminals Ltd (51% owned by Aegis and 49% by Vopak). Aegis Vopak Terminals Ltd (AVTL) has achieved financial closure. Aegis proposes as per the business plan with Vopak, to proceed with 5 Capex Plan out of 12 agreed with Royal Vopak.

 

Buy for a target price of Rs 330 per share

"We expect earnings to grow by 29.9% in FY23E & grow by 12.0% in FY24E with the stock currently trading at valuation of 18.0x P/E FY24E EPS. We recommend BUY with a Target Price of Rs 330 at 22x FY24E earnings based on strong prospects," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Kotak Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.