1. At a Glance – Ports, Profits & Peak Valuations
Aegis Vopak Terminals Ltd is one of those rare Indian companies where operating margins look illegal, balance sheet is finally sobering up, and yet the stock price behaves like it drank five Red Bulls before market open.
- Market Cap: ~₹24,300 crore
- Current Price: ~₹220
- Q3 FY26 Revenue: ₹197 crore
- Q3 FY26 PAT: ₹62 crore
- EBITDA Margin: ~74% (yes, seventy-four)
- ROCE: ~7%
- 3-month return: -21% (Mr Market woke up grumpy)
This is infrastructure, but priced like luxury tech. Curious already?
2. Introduction – The Most Boring Business With the Sexiest Margins
Tank storage is supposed to be dull. Steel tanks. Ports. Pipes. Paperwork.
Yet AVTL turned this snoozefest into a cash-flow machine with annuity-like revenues and near-zero customer churn.
The company came to markets in June 2025, raised ₹2,800 crore, promised debt reduction and expansion—and shockingly, actually did what it said. No “strategic flexibility” nonsense.
But now comes the real question:
Is this a monopoly infra compounder… or just a very expensive parking lot for LPG?
3. Business Model – WTF Do They Even Do?
AVTL owns and operates LPG and liquid storage terminals at major Indian ports. Clients import fuel, chemicals, and gases, park them in AVTL tanks, and pay rent.
That’s it.
No commodity
price risk.
No inventory risk.
No marketing gimmicks.
Revenue drivers:
- Storage charges (long-term contracts)
- Throughput-based income
- Ancillary services (blending, heating, handling)
Once a tank is built and contracted, it prints money quietly—like a government job with equity upside.
4. Financials Overview – Numbers That Don’t Blink
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 197 | 162 | 188 | 22.3% | 4.8% |
| EBITDA | 146 | 119 | 137 | 22.7% | 6.6% |
| PAT | 62 | 38 | 54 | 62.7% | 14.8% |
| EPS (₹) | 0.56 | 0.38 | 0.49 | 47% | 14% |
Commentary:
Margins didn’t expand. They refused to fall. That’s the flex.
5. Valuation Discussion – Paying Airport Lounge Prices
EPS annualisation (Q3):
Average of Q1–Q3 EPS × 4 ≈ ~₹1.9 (matches TTM)
Valuation checks:
- P/E: ~119×
- EV/EBITDA: ~48×
- Price to Book: ~5×
Even global tank terminal players would blush at this multiple.
Fair Value Range (educational only):
- P/E method: assumes infra premium but not divinity
- EV/EBITDA method: global peers trade far lower
- DCF: sensitive to utilisation and tariff growth
Disclaimer:
This fair value range is for educational purposes only
