Aegis Logistic.....A Growth Play....cmp..195.50.....

Friends,
I have been tracking this Co since long and I liked it too but somehow was not able to get convinced about the growth of this Co but after looking at it's takeover of Shell GasLPG India , I think the management is doing the right thing to deliver the growth of future.....
Well, the taking over Shell Gas LPG India is an old news which I read in Dec 2009 and at that time the share was around 171 and after the annoucement of taking over Shell Gas the stock made a new high of 242 .....and is back at 195.....so after taking over Shell Gas LPG the price has not gone up much and hence feels that it is a good value buy.....
But other thing to take note of it here is the Co has buy back some 10 lacs shares from the open market at 143 price and the buy back has closed now......
The promoters already hold 66% and after the buyback the eq will be less by over 1 cr or 10 lacs shares....That will enhance the eps as well...The Mcap and Sales ratio is almost 1:1 and hence gives ample scope for growth....Moreover Aegis Logistic seems to be a Cash Rich Co otherwise there is no way they can go for a Buy Back......
Moreover Aegis has Gas terminals in various states and intend to open more.Apart from being a storage Co Aegis seems to me a very good Logistic play perticularly for LPG......
I feel that at this price with buy back just completed looks a value buy for LT.....as the P/E is almost at par, means available at 10 P/E.....so if Co grows as per my view and hence eps also goes higher then price should also go up with the earnings going up.....what one need to look is what the growth remains...but I am optimist about the growth....so after DD one can take exposer here and try to buy more on dips if market gives opportunity......



Aegis Logistics acquires Shell Gas (LPG) India

Press Trust of India
Monday, December 21, 2009 (Mumbai)
Oil and gas logistics provider, Aegis Logistics, has acquired Shell Gas (LPG) India and expects the whole acquisition process to be completed in the next 90-days, a top company official said.
"We have taken over Shell Gas's LPG business," Aegis Logistics' Vice-Chairman and Managing Director, Raj Chandaria, told PTI here today.
Citing a confidentiality clause, he declined to reveal the sum at which the acquisition is being effected. "The acquisition is being funded through our internal resources—we have ample liquid resources," Chandaria said.
Post the acquisition, Shell Gas (LPG) India will become a 100 per cent subsidiary of Aegis Logistics.
Shell Gas has been primarily active in Gujarat and Maharashtra and in a smaller way in other regions. "Its two key assets--a terminal at Pipavav Port and a filling plant at Kheda, are of great importance to us," he said.
The terminal has a capacity of 2,700 metric tonnes of gas, he said, adding "this acquisition will considerably beef-up our marketing and importing of LPG."
The company's shares closed today at Rs 185,marginally up over the previous close.
Aegis presently has two terminals at Mumbai and one in Kochi. "Our aim is to have a necklace of terminals all over India's coastline," Chandaria said.
The company was interested in adding more terminals through acquisitions when the right opportunity presented itself, he said.
Asked what advantages would accrue to Aegis after this acquisition, Chandaria said that "it will strengthen our presence in the industrial and commercial segments besides giving us an entry into the cylinder market. With Shell now out of the business, it only makes our position stronger," he said.