• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Jayanta Mallick

Kolkata , April 27

AEGIS Logistics counter on Wednesday moved up by 4 per cent to finish at Rs 73 after touching a high of Rs 76.90. Interestingly, the company's buyback proposal for about 5 per cent stake, which is now before the Securities and Exchange Board of India, had an offer price tag of Rs 75 a share.

According to analysts, the stock is in an aggressive revaluation process not because of the buy-back price, but due to sharp increase in profitability and further ramp up in its businesses. "Its single digit P-E multiple in the context of strongly improving fundamentals and prospects of forward earnings makes it very attractive," commented an official in an institutional brokerage.

According to Mr Rajesh Agarwal of CD Equisearch, its gas and liquid petroleum businesses, particularly the latter, have produced excellent returns. For the nine months ended December 2004, the company has reported Rs 8.82 crore PAT, a jump of 60.9 per cent over the corresponding period in the previous fiscal. Sales (mainly terminal & tank rentals including port handling charges) for the same period have gone up by 43.9 per cent to Rs 81.93 crore.

The company is now focusing on its two main business lines namely liquid & gas terminal logistics services and LPG distribution. "Growth opportunities in these businesses are immense", he added.

Plans to increase its operations by providing more value-added logistics services to customers with end-to-end solutions and to grow the business into a multi-location capacity in order to service more products and customers are on the anvil.

In the gas business, it is in the process of increasing throughput and expanding the network of auto LPG stations. It has licence to set up such stations in Maharashtra. According to port sources, it is understood that the company is close to obtaining terminal and tanking rights in at least one of the three ports for which it had bid. Currently, it has such facilities at both JNPT and Mazagaon.

Further, consolidation of holding among its promoters is likely to sharpen the company's focus in its current line of business, according to a fund manager. While the promoters now have 63.9 per cent holding in the company, general public have 30.04 per cent holding.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Aegis Logistics up on growth prospects — Buyback offer price at Rs 75 per share

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line