Broker’s Call: Aegis Logistics (Buy)

Why It Matters

The upside reflects Aegis’s strategic positioning in India’s clean‑energy transition and its expanding infrastructure, promising strong earnings growth for investors.

Key Takeaways

• Aegis runs 22 terminals at seven ports, holding 61% LPG import share.
• Distribution volumes rose 45% YoY, boosting EBITDA per tonne to ₹7,000.
• Project GATI’s $4.8 bn capex adds five ports, unlocking ammonia, gas.
• Revenue projected to grow 25% CAGR, reaching $1.56 bn by FY28.

Pulse Analysis

Aegis Logistics has evolved over six decades from a modest bulk carrier to a dominant player in India’s LPG and bulk liquid sectors. Its network of 22 terminals across seven major ports gives it a 61% share of private LPG imports and more than 30% of the overall bulk liquid market, a scale few domestic rivals can match. The firm’s flawless safety record while handling millions of tonnes of hazardous material further reinforces its credibility with regulators and partners such as Vopak.

The company now stands at the intersection of several powerful tailwinds. India’s aggressive coal‑to‑clean‑fuel transition, coupled with the $4.8 bn Project GATI that will add five new ports, expands Aegis’s capacity to handle emerging energy molecules like ammonia and natural gas. Multi‑modal pipeline evacuations and rising rural and industrial LPG demand have already pushed distribution volumes up 45% year‑on‑year, allowing EBITDA per tonne to re‑rate from ₹4‑5k to ₹7k. These dynamics create a non‑linear earnings inflection as new assets come online.

From an investment perspective, Aegis is modeled at a 30× FY28E earnings multiple, translating to a target price of ₹1,369 (~$16.5k). Forecasts anticipate a 25% compound annual revenue growth, delivering $1.56 bn in sales and $323 mn in EBITDA by FY28. While execution risk around capex and regulatory approvals remains, the firm’s entrenched infrastructure, strong market share, and alignment with India’s clean‑energy agenda position it for sustained profitability and make the BUY call compelling.