At a Glance
Aegis Vopak Terminals Ltd, the lovechild of Aegis Logistics and Dutch giant Royal Vopak, is India’s newest listed liquid logistics player, storing LPG, chemicals, and dreams. With a ₹27,700 Cr market cap and P/E of 218 (yes, seriously), this port-side business is floating on investor optimism, high margins, and… even higher debt.
1. 🧨 Introduction with Hook
“Dutch efficiency meets Indian jugaad” — that’s the tagline Aegis Vopak should have gone with.
Born from a merger between Aegis Logistics’ terminal biz and Royal Vopak’s Indian arm, AVTL came out of the IPO dock with high expectations. The company operates LPG and chemical terminals across key Indian ports and flaunts a global legacy.
The only catch? It trades at 218x earnings while debt balloons and earnings play hide & seek.
2. 🛢️ Business Model – WTF Do They Even Do?
Let’s decode the business before it evaporates in acronyms:
- What They Store:
- LPG (liquefied petroleum gas)
- Chemicals
- Oil derivatives
- Liquid bulk cargo
- What They Offer:
- Tank storage services
- Vapour recovery
- Blending, pipeline transfers
- Rail + road evacuation
- Who They Serve:
- OMCs (IOCL, BPCL)
- Global traders (e.g. Vitol, Trafigura)
- Petrochemical manufacturers
Think of them as the warehouse + valet parking guy for explosive liquids.
3. 🧾 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹353 Cr | ₹562 Cr | ₹621 Cr |
| PAT | ₹-0 Cr | ₹87 Cr | ₹127 Cr |
| OPM | 65% | 71% | 74% |
| ROE | – | 8.7% | 8.72% |
🔥 Highlights:
- Ultra-fat margins (70%+ OPM) — rare in infrastructure.
- PAT up 46% YoY in FY25.
- ROE and ROCE still tepid given leverage.
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Market Cap | ₹27,705 Cr |
| P/E | 218x |
| P/B | NA (Book Value data not published) |
| ROE | 8.72% |
🔍 Fair Value Estimate (EduMath™):
- PAT FY25 = ₹127 Cr
- EPS = ₹1.29
- Reasonable P/E (infra + storage) = 25–35x
- FV Range = ₹32–₹45
⚠️ The stock trades at ₹250. That’s 6x higher than our upper valuation band.
5. 🍿 What’s Cooking – News, Triggers, Drama
📍June 2025: Mangalore Expansion
- Acquired 82,000 MT LPG terminal at ₹671 Cr
- Funded through IPO proceeds (no new dilution = ✅)
- Strategic coastal asset — boosts capacity by ~15%
📈 India Ratings Upgrade
- “AA” rating reaffirmed with “Positive” outlook in June 2025
- This might lower future debt costs
💥 CIN Change in July 2025
- Company is now officially public (U to L = Unlisted to Listed)
👀 Investor Watchlist Items:
- IPO lock-ins ending in H2FY26
- Will the Dutch increase stake or exit gradually?
6. 💣 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity | ₹989 Cr |
| Reserves | ₹931 Cr |
| Borrowings | ₹4,009 Cr |
| Other Liabilities | ₹193 Cr |
| Fixed Assets | ₹4,600 Cr |
| Total Assets | ₹6,123 Cr |
💀 Debt-to-Equity = ~2.1x
That’s heavy, even for infra/logistics. But manageable if EBITDA scales up fast.
7. 💸 Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| 2023 | ₹172 Cr | ₹(1,786) Cr | ₹1,629 Cr | ₹16 Cr |
| 2024 | ₹337 Cr | ₹(857) Cr | ₹603 Cr | ₹83 Cr |
| 2025 | ₹478 Cr | ₹(378) Cr | ₹386 Cr | ₹486 Cr |
⚡️ FY25 CFO nearly ₹500 Cr = good!
🔻 Capex has slowed — most infra completed = good!
📉 Still heavily dependent on financing flows = needs watching.
8. 📉 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 8.72% |
| ROCE | 7.01% |
| Interest Coverage | ~2.5x |
| Debtor Days | 70 |
| Working Capital Days | 105 |
Verdict:
- ROE/ROCE below 10% = meh
- Cash Conversion Cycle short = efficient ops
- Interest burden rising = future risk if growth slows
9. 🧾 P&L Breakdown – Show Me the Money
| FY | Revenue | OPM | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹353 Cr | 65% | -₹0 Cr | -₹0.70 |
| FY24 | ₹562 Cr | 71% | ₹87 Cr | ₹865 (skewed by low base) |
| FY25 | ₹621 Cr | 74% | ₹127 Cr | ₹1.29 |
Growth is visible, but FY24 EPS is distorted by reverse merger accounting. FY25 is a cleaner indicator.
10. 🏆 Peer Comparison – Who Else in the Game?
| Peer | MCap (Cr) | P/E | OPM | ROE |
|---|---|---|---|---|
| Aegis Vopak | ₹27,705 | 218x | 74% | 8.72% |
| Ganesh Benzoplast | ₹705 | 10x | 29% | 13.6% |
🤡 Comparison’s a joke. AVTL is 39x bigger and trades at 22x Ganesh’s multiple despite lower ROE.
Also, AVTL operates in regulated infra logistics with global clients — a totally different league.
11. 🧑💼 Miscellaneous – Shareholding, Promoters
| Category | % Holding |
|---|---|
| Promoters (Aegis + Vopak) | 86.94% |
| FIIs | 6.07% |
| DIIs | 4.63% |
| Public | 2.37% |
| Total Shareholders | 1.16 lakh |
⛔️ Very low free float → stock can be illiquid or volatile
✅ No pledging or dilution concerns
📉 Risk: Once lock-ins expire, promoter/FII exits could create supply overhang
12. 📉 EduInvesting Verdict™
Aegis Vopak Terminals is a rare combo of:
- Monopoly-style infra
- Fat operating margins
- Global pedigree
BUT the stock is priced like it’s 2035 already.
With 218x P/E, muted ROE, and ₹4,000 Cr in debt — this is a “solid business, stupid valuation” case.
It’s like paying ₹2,000 for a litre of milk because it came from a Dutch cow.
🎯 Fair Value Range = ₹32–₹45
Unless earnings grow 4–5x fast, current levels are massively disconnected from fundamentals.
✍️ Written by Prashant | 📅 08 July 2025
Tags: Aegis Vopak Terminals, infra logistics, LPG storage, Royal Vopak India, terminal business, port logistics, EduInvesting analysis, IPO 2024, overvalued stocks
