Mehabe score: 3 G Factor: 3 Piotski Score: 5 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 5.
Description
Aegis Logistics is in the business of import and distribution of Liquified Petroleum Gas (LPG) and storage and terminalling facility for LPG and chemical products.Site:AEGISCHEMMain Symbol:AEGISLOG
Stock trades at 321.0, below its 50dma 337.73. However it is trading above its 200dma 296.83. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 337.73.
The 52 week high is at 394.40 and the 52week low is at 180.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 36.84%
Weakness
– The company has delivered a poor sales growth of 11.69% over past five years.
– has a low return on equity of 11.79% for last 3 years.
Competition
– The industry trades at a mean P/E of 50.5x. 3M India trades at the industry’s max P/E of 188.84x. AEGISCHEM trades at a P/E of 50.4x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. AEGISCHEM has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 4.1%. The max 1- month return was given by Rain Industries: a return of 36.37 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 678.0 cr compared to Rs 636.0 cr for period ended Jun 2020, a rise of 6.6%
Operating Profits reported at Rs 105.0 cr for period ended Jun 2021 vis-vis 67.0 for period ended Jun 2020 .
Operating Margins expanded 495.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 1.9 compared to Rs 1.86 for previous quarter ended Mar 2021 and Rs 0.88 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3885.0 cr for period ended TTM vis-vis sales of Rs 3843.0 cr for the period ended Mar 2021, a growth of 1.1%. The 3 year sales cagr stood at -11.6%.
Operating margins expanded to 11.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 260.0 cr for period ended TTM vis-vis sales of Rs 223.0 cr for the period ended Mar 2021, rising 14.2%.
Company recorded a Net Profit CAGR of 5.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 442.0 cr for period ended Mar 2021 vis-vis Rs 146.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 74% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is -46% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is 124% vis-vis a compounded profit growth of 4% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 14.96% vis-vis 14.78% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.38% vis-vis 25.16% for Mar 2021
Conclusion
– has been maintaining a healthy dividend payout of 36.84% – The company has delivered a poor sales growth of 11.69% over past five years.
– has a low return on equity of 11.79% for last 3 years.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 337.73 and is trading at 321.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
