Aegis Logistics stock surges 9% to new high after Q4 results, up 23% in 2 sessions
Shares of Aegis Logistics surged 9% to hit a new high after strong Q4FY24 results. Stock has jumped 23% in 2 sessions.
Shares of Aegis Logistics surged 9 percent in intra-day deals on Monday to hit a new high of ₹775.20 apiece after the company posted strong results for the quarter ended March 2024 (Q4FY24). This is the second straight session when the stock has hit a record high. In these 2 sessions, the stock has jumped 23 percent.
On Friday, the stock rallied 18.5 percent in intra-day deals to its new high of ₹630.1. It ended the previous session 12.7 percent higher at ₹710.25. Following this surge, the stock has zoomed 177 percent from its 52-week low of ₹280, hit on November 3, 2023.
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In the March quarter, the company's profit after tax rose 39.35 percent YoY to ₹196.29 crore as against ₹140.86 crore in the same quarter last year. However, its revenue from operations slipped 17.27 percent YoY to ₹1,837.17 crore in the March 2024 quarter versus ₹2,154.47 crore in the same quarter last fiscal.
Meanwhile, the firm reported better-than-expected earnings before interest, tax, depreciation, and amortisation (Ebitda) of ₹310 crore, up 51 percent YoY, mainly aided by strong Ebit growth of 105 percent YoY for the liquids division.
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The company also recommended a final dividend of 200 percent i.e. ₹2/- per share of the face value of Re1 each for the financial year ended March 31, 2024, subject to approval of members at Annual General Meeting.
Furthermore, Aegis Logistics announced an ambitious capex plan for commissioning of 25,000 kilo litre (KL) at Kandla in FY25, the full commissioning of 110,000 KL capacity at JNPT by FY25, 71,000 KL capacity to be operational in FY25, and additional 25,000 KL capacity to be operational in FY25 at Kochi. Moreover, in the gas division, two cryogenic LPG projects at Pipavav and Mangalore are progressing on time and within budget.
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For the full financial year 2023-24 (FY24), the company's net profit rose 22.95 percent to ₹569.21 crore from ₹462.96 crore during the previous year ended March 2023. However, its sales declined 18.33 percent to ₹7,045.92 crore in FY24 from ₹8,627.21 crore in FY23.
Post the earnings, brokerage house Motilal Oswal retained its ‘buy’ call on the stock with a target price of ₹670, implying a 13 percent downside. The brokerage believes Aegis has robust growth outlook but the valuations are no longer inexpensive.
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“While we estimate a 17 percent CAGR over FY24-26, we believe that the current valuations at 32x FY26E EPS already factor in the strong expansion in capacity and earnings,” it said in the result update.
The scrip has soared 99 percent in the last 1 year and over 120 percent in 2024 YTD. It has advanced almost 9 percent in May, extending gains for the 5th straight month. The stock also jumped 54 percent in April, 1.5 percent in March, 16.5 percent in February and 7.3 percent in January 2024.
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Aegis Logistics Limited, together with its subsidiaries, operates as an oil, gas, and chemical logistics company primarily in India. The company operates through Liquid Terminal Division and Gas Terminal Division segments. It owns and operates a network of shore based tank farm installations for the handling of bulk liquids, including hazardous chemicals, petroleum products, and petrochemicals for petroleum, oil, petrochemical, chemical, and vegetable oil industries, as well as sources and distributes LPG and propane.
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