JM Financial has maintained its ‘Buy’ ratings on both Aegis Logistics and Aegis Vopak Terminals, backing the two companies for different reasons.
The brokerage sees Aegis Logistics as the more stable business with better earnings visibility, while Aegis Vopak Terminals offers stronger long-term growth potential despite facing short-term operating challenges.
Aegis Logistics
JM Financial raised its target price on Aegis Logistics to Rs. 1,200 from Rs. 935. The revised target implies an upside of about 23 percent from the current market price.
The brokerage said distribution volumes rose 72 percent year-on-year in the fourth quarter of FY26. Profitability climbed to nearly Rs. 15,000 per tonne, well above historical levels.
It also increased consolidated EBITDA estimates by:
- 36 percent for FY27
- 15 percent for FY28
For FY26, Aegis Logistics reported:
- Revenue: Rs. 8,333 crore
- EBITDA: Rs. 1,599 crore
- Profit after tax: Rs. 1,107 crore
Growth in the gas business supported earnings during the year.
JM Financial said policies discouraging the use of competing fuels in industrial LPG applications are helping strengthen the company’s LPG distribution business.
Aegis Vopak Terminals
JM Financial retained its ‘Buy’ call on Aegis Vopak Terminals with a target price of Rs. 330, indicating a potential upside of 41 percent.
According to the brokerage, congestion in the Strait of Hormuz disrupted LPG imports and affected throughput volumes. As a result, it lowered EBITDA estimates by:
- 6 percent for FY27
- 4 percent for FY28
Despite the revisions, JM Financial kept its positive long-term view.
The brokerage expects the company to move gradually toward a mature asset mix similar to that of its global parent. It also pointed to infrastructure projects and capacity additions as growth drivers, including:
- The Kandla-Gorakhpur LPG pipeline
- Expansion of LPG storage capacity
- Additional liquid storage facilities at key ports
During FY26, Aegis Vopak reported:
- Revenue: Rs. 923 crore
- EBITDA: Rs. 686 crore
- Profit after tax: Rs. 342 crore
JM Financial noted that the stock has corrected by around 18 percent, and said much of the near-term weakness appears to have already been factored into the share price.
Which stock does JM Financial prefer?
While it remains positive on both companies, the brokerage draws a distinction between the two businesses.
- Aegis Logistics: Seen as the steadier play with stronger earnings visibility and improving profitability.
- Aegis Vopak Terminals: Viewed as a higher-growth opportunity with greater upside potential, but exposed to short-term operational pressures.
Based on its target prices, JM Financial sees upside potential of about 23 percent in Aegis Logistics and nearly 41 percent in Aegis Vopak Terminals.
TL;DR:
JM Financial has retained ‘Buy’ ratings on Aegis Logistics and Aegis Vopak Terminals. It raised the target price for Aegis Logistics to Rs. 1,200 and kept a Rs. 330 target on Aegis Vopak, which the brokerage says offers higher long-term growth despite short-term disruptions.
AI summary:
- JM Financial retained ‘Buy’ calls on both Aegis group companies.
- Target price for Aegis Logistics was raised to Rs. 1,200.
- Aegis Vopak Terminals carries a target price of Rs. 330.
- LPG import disruptions affected Aegis Vopak’s near-term outlook.
- The brokerage sees Aegis Logistics as the steadier business and Aegis Vopak as the higher-growth bet.
