Saturday, March 20, 2010

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.

11 comments:

  1. Dear MR Rajeev

    Iam really impressed with Aegis Logistics, Iam
    planning to add this share on monday.
    can you please suggest your valuable opinon about manugraph Industries FV 2 CMP 46, In FY 2008-09 the company had posted a full year EPS of nearly Rs.12 on a small equity of Rs.6.08 crores,
    Promoters Holding 57.02,Public 20.92
    Dividiend Yied 4.7%
    Improving economic scenario and order book position, in January 2010 the company has begun normal capacity operations at both the manufacturing units at Kolhapur. Last month (February) it sold 32 printing unit modules to a Gujarati newspaper by the name Gujarat Samachar Daily

    Rajeev Can I Enter Manugraph at CMP 46

    Thanks in advance

    ReplyDelete
  2. ARIES AGRO - For a Fertile Portfolio
    Posted by: valuepick from MMB

    Price : BSE: Rs 113.55 ( 7.12 % ), NSE: Rs. 112.70 ( 6.22 % )
    Mounting food inflation is a serious threat to the economies worldwide. But some companies are benefiting from this situation .All governments are forced to take steps to improve food production using scientific methods and most modern techniques. Companies from the agri- related sectors are the major beneficiaries of government’s such efforts. In India micro irrigation sector is getting very big boost in every budget .Even though fertilizer companies are also important in this perspective ,government control on fertilizer prices limiting their potential. Along with fertilizers, micronutrients are also gaining acceptance among Indian farmers. Moreover micronutrients are not subject to the regulatory constraints that fertilizers face. The micronutrients business has considerable potential in the Indian context. Factors such as low yields of major food grains and horticultural crops, high soil alkalinity and intensive cultivation are the key demand drivers formicronutrients. The market for micronutrients such as zinc, iron and copper in India, is expected to double over the next two decades. ARIES AGRO is the largest player in micronutrients from the organised sector in India . The other two players in this sector(from organized space) is Ranade Nutrients and Karnataka Agrochem ,but both are only regional players.Aries has 65 branded products coming from six manufacturing units in India , one each at Mumbai, Kolkatta, Hyderabad , Bangalore ,Ahmedabad ,Lucknow and one new factory in UAE which is mainly for catering middle east region and North Africa .Aries is in the process of launching new products which include Natural amino acid chelates,Boidegradable chelates and Boidegradable plant protection products. With the inauguration of its Ahmedabad factory company entered into a new space of Bio fertilizers too. Company’s largest distribution network of 5500 distributors and 76500 (seventy six thousand five hundred) retail outlets across India is the main attraction for a rural centric business like this. In future company can easily roll out allied products throughout this network without much marketing efforts. In addition to this distribution points company has added a fleet of 100 rural retail vehicles called ‘Krishi Vinjan Vahan ‘ in 9 statesin India.This is mainly for improving company’s rural reach and advisory services.

    Financial Perfomance

    For the nine month ended in December 2009 Aries posted a net profit of Rs.10 crore which is more than 300 % increase from the last full year figure(3.1 crore). Company is expected to post an EPS of Rs.12/- for this financial year and an EPS above Rs.20 for FY 2011. Going forward big corporates are expected to coming into the farming sector of India in a big way. This will surely improve the prospects of the products of companies like Aries along with the initiatives of governments to increase food production. BUY this emerging star from the agri-related space.

    ReplyDelete
  3. By Valuepick

    MEDICAMEN BIOTECH - Small is Beautiful
    Medicamen Biotech is a pharma company having two units located at Bhiwandi in Rajastan and Haridwar in Uttarakhand. Medicamens main strength is in antibiotic and anti bacterial segment.It manufactures and exports tablets, Capsules, Liquid Syrup and Dry Syrup for various applications.Its manufacturing units are approved by overseas authorities like National Drug Authorities- Kampala, Uganda,Food & Drug Board, Ghana. ,. Ministry of Health (NAFDAC), Nigeria,. Ministry of Health, Zimbabwe,. Brazilian Sanitary Vigilance Agency, Brazil,. Board of Drugs & Medical Appliances, Ministry of Health, Republic of Yemen,.Tanzania Food & Drugs Authority- Tanzania ,.Pharmacy, Medicines & Poison Board- Malawi,.Ministry of Health- Ivory Coast ,.Bureau of Food & Drugs- Philippines ,Cosmetics, Devices & Drugs Authority- Srilanka ,.Drugs Administration of Veitnam- Veitnam ,.Pharmacy & Posion Board- Zambia ..etc. Its concentration in less developed countries gives immense scope for growth. Company’s decision to moving into retail segment is started to paying off . For the nine month ended company posted a sale of 74 crore and NP of Rs.3 crore which is higher than the last fullyear sales figure of 86 crore sale and NP of 1.3 crore .Medicamen is expected to cross 100 crore sales in full year .On an equity base of 7.7 crore, company can post an EPS about Rs.6/- . At current market of Rs.25/- there is not much risk in this counter especially at a time promoters are acquiring shares from open market.
    Posted by VALUEPICK

    ReplyDelete
  4. From MMB

    TCS, Wipro, Spanco shortlisted for e-migrate project


    Bangalore: The Ministry of Overseas Indian Affairs has shortlisted TCS, Wipro and Spanco for its Rs. 100 crore project designed to automate the emigration process from India, reports Business Line.

    Mahindra Satyam and Prithvi Information Solutions which also bid for the project, did not make the cut as they were disqualified on `technical eligibility grounds`, two persons with direct knowledge of the development told Business Line.

    E-migrate is an automation project based on the public-private partnership model. The firm that is awarded the project will be the `implementation agency` for the project, which would involve designing, developing and testing the flagship e-migrate application. The e-migrate project is likely to be awarded in April and the initiative is expected to go live 58 weeks after that.

    The project will capture information about migrants and agents as well as data pertaining to their counterparts in the countries concerned. It also involves electronically linking the offices of the Protector-General of Emigrants (PGoE), creation of a centralized data repository, and deployment of information kiosks at international airports.

    The three shortlisted companies will now have to make presentations on the solutions they propose. The Ministry will follow a points-based evaluation methodology wherein the bidders will be awarded points on the basis of their relevant past experience, proposed solution and proposed manpower. "Technical evaluation should take three weeks` time, technical markings will have an impact on bid price as it carries 70 percent weightage," one of the persons pointed out.
    (SiliconIndia)...

    ReplyDelete
  5. nirash,
    u r impressed with Aegis Logistic is because I have written up why it is growth buy so nicely and very convincesingly.....very few analyst will write this things which I have discussed here for Aegis Logistic....

    ReplyDelete
  6. nirash,
    I do not track Manugraph so no view..

    ReplyDelete
  7. Aegis doing Guerilla Marketing here in Bangalore means they dont want to spend much money on Ads, which means they are conservative in spending, which means they need more money for expansion, which means they are confident about the growth, which means investor gets reward for long term holders only :)

    ReplyDelete
  8. Hi Rajeev,

    Most of your picks are hitting bulls eye. Will be interesting to get your new picks and future views.

    In case following any of following scrips pls share your view on
    SREI Finance
    NMDC post FPO
    Shirpur Gold
    Kolte-Patil
    Nagarjuna Fertilizers
    GK Power Infra
    Petronet LNG
    Garware Offshore

    With Regds-
    Vijay

    ReplyDelete
  9. Vijay,
    Seems you are not looking properly my blog.There is lots of discussion that has taken place on Srei Infra.Just go through commnets on Quippo post...you will find some wonderful writeups from readers.What you need to do is click open all comments on each and every post and read them.
    I have been telling time and again, read comments and read my replies....that is most important thing to do at my blog.One can always get some answers there...
    Nagarjun Ferli ,Petronet looks good to me for LT...others I do not track..

    ReplyDelete
  10. Just came across - http://www.vccircle.com/500/news/aegis-buys-us-firm-sallie-maes-customer-service-centre

    ReplyDelete