At a Glance
Aegis Logistics Ltd has emerged as India’s gas logistics powerhouse, operating LPG terminals, pipelines, and chemical storage hubs. While sales have been volatile, profits and margins have surged, driven by operating leverage and infra commissioning. With its new Pipavav LPG terminal going live and ROE climbing, Aegis is gassing up for the long haul.
1. Introduction with Hook – From Tank Farm to Cash Farm
Imagine a company that sells no gas, but profits wildly from the storage, movement, and distribution of it. No oil rigs. No drilling. Just cold, clean logistics.
That’s Aegis Logistics Ltd, the nerdy backbencher of India’s energy sector who built ₹26,000 Cr market cap just by being the guy with the key to the gas godown.
- It doesn’t own LPG.
- It doesn’t trade crude.
- But it’s the invisible boss of India’s petroleum logistics chain.
In short, it’s the “IRCTC of LPG + Chemicals.” You don’t think of it, but you can’t avoid it.
2. WTF Do They Even Do? (Business Model)
Aegis operates liquid and gas storage terminals, LPG filling plants, pipelines, and distribution infrastructure across major Indian ports.
🔌 Segments:
- Gas Logistics: Import terminals (like Haldia, Kandla, Pipavav), bottling, LPG pipelines, bulk LPG distribution.
- Liquid Logistics: Bulk storage tanks for chemicals, petrochemicals at ports like Mumbai, Kochi, and Haldia.
- Retail LPG: Under “Aegis Puregas” and similar brands for auto, commercial, and domestic use.
🛳️ Clients include: HPCL, BPCL, Reliance, IOCL, Total, etc.
3. Financials Overview – Profit, Margins, ROE, Growth
💥 Explosion Alert: Net profit has gone from ₹134 Cr in FY20 to ₹787 Cr in FY25. That’s 6X growth in 5 years!
| Metric | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Sales (₹ Cr) | 7,183 | 3,843 | 4,631 | 8,627 | 7,046 | 6,764 |
| OPM % | 4% | 10% | 12% | 8% | 13% | 16% |
| Net Profit (₹ Cr) | 134 | 249 | 385 | 511 | 672 | 787 |
| ROE % | 3% | 6% | 10% | 13% | 16% | 16% |
| ROCE % | 13% | 15% | 17% | 16% | 15% | 13% |
🧠 Highlights:
- OPM doubled in 2 years — asset utilization!
- ROE consistent at 15–16% range
- Sales are erratic due to trading losses post COVID and volatility in gas prices.
4. Valuation – Is It Cheap, Meh, or Crack?
At ₹758/share, Aegis trades at:
- P/E: 40x TTM
- P/B: 5.75x
- EV/EBITDA: ~20x
- Dividend Yield: 0.26%
🏷️ EduFair Value™ Range: ₹580–₹700
🔍 Rationale:
- At 25x normalized FY26E EPS of ₹28–30 (mid-cycle), FV sits between ₹580–700.
- Expansion in Pipavav can add ₹80–100 Cr to EBITDA in FY26
- However, high P/B reflects asset-heavy nature
Valuation’s not in bubble mode, but it ain’t no LPG subsidy either.
5. What’s Cooking – News, Triggers, Drama
🔥 Cryogenic Heat Alert:
- Pipavav LPG terminal (48,000 MT) commissioned on July 3, 2025.
- Adds a major boost to import & throughput capacity.
🟢 Credit Upgrade:
- India Ratings revised outlook to ‘Positive’, AA affirmed.
🪙 Interim Dividend: ₹2/share, steady payouts continue.
📉 Sales Drop Alert:
- Q4FY25 sales down -7% YoY but net profit jumped due to margin expansion.
6. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY20 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Borrowings (₹ Cr) | 253 | 1,924 | 2,665 | 4,606 |
| Net Worth (₹ Cr) | 1,655 | 3,532 | 3,894 | 4,631 |
| Debt/Equity | 0.15x | 0.55x | 0.68x | 1.00x 😬 |
🛑 Debt doubled in FY25 to fund infra — manageable, but now at max tolerable limits.
7. Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | CFI (Capex) | CFF |
|---|---|---|---|
| FY24 | 656 | -712 | +256 |
| FY25 | 558 | -1,463 | +1,283 |
📦 Huge capex for Pipavav terminal
💰 Debt-funded expansion, but ops cash flow stable
8. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| OPM | 16% ✅ |
| ROE | 16% ✅ |
| ROCE | 13% 😐 |
| D/E | 1.0x ⚠️ |
| Cash Conversion Cycle | 20 days |
📦 Working capital stable, but debt’s the elephant in the gas room.
9. P&L Breakdown – Show Me the Money
FY25 (₹ Cr):
- Sales: ₹6,764 Cr
- Op Profit: ₹1,098 Cr
- Other Income: ₹208 Cr
- EBITDA: ₹1,306 Cr approx.
- PAT: ₹787 Cr
- EPS: ₹18.90
10. Peer Comparison – Who Else in the Game?
| Company | M.Cap (₹ Cr) | OPM | ROE | D/E | P/E |
|---|---|---|---|---|---|
| Aegis Logistics | 26,600 | 16% | 16% | 1.0x | 40x |
| Adani Total Gas | 1,28,000 | 22% | 18% | 0.4x | 110x |
| Gujarat Gas | 45,000 | 14% | 21% | 0.3x | 26x |
| IGL | 35,000 | 20% | 20% | 0.1x | 23x |
💡 Takeaway: Aegis is still small vs Adani/IGL, but much more diversified (logistics infra), not just CGD.
11. Miscellaneous – Shareholding, Promoters
🧬 Promoters: 58.1% holding — no pledge
🌍 FIIs: Stable at 18.1%
🏦 DIIs: Growing from 2.3% in 2022 to 6.3% in 2025
👨👩👧👦 Public: Declining — Smart money increasing stake
12. EduInvesting Verdict™
Aegis is that quiet overachiever in class. Doesn’t flex. Doesn’t trend on Twitter. But consistently builds infra that powers India’s fuel backbone.
While it’s not trading at dream valuations, it’s also not priced for perfection. The Pipavav expansion, rising LPG demand, and India’s infra boom put it in a sweet logistical spot.
💥 Just remember: no matter who owns the gas… someone’s gotta store and move it.
And Aegis owns the goddamn keys. 🔑
✍️ Written by Prashant | 📅 July 8, 2025
Tags: Aegis Logistics, LPG terminal, Pipavav, Oil & Gas logistics, Cryogenic storage, Infra stocks, Nifty 500, EduInvesting
