This is July 29, 2019 news. Players of Cable Industry in Fake ITC Offences. Looks like evasion is on an industry level. But I am not sure if Polycab is guilty.

Disclosure: Not Invested.

I am closely tracking this company, some good MFs (PPFAS, SBI) also invested and have decent allocation, still not figuring out why the market is not giving value to this company,although Promoter as well as Financials are very good.
One concern that i think is – Trend of increasing UPI(Govt Push as well).
Disc – Not invested but tracking like a hawk eye for Price Volume actions.

Can some one pls update if there is any other open offer after recent Abuja’s 50% acquisition?

After Spending a 3 days and Refer Above Thread Here is My Take

Industry Overview

According to the fortune business insights the size of the world market for liquefied petroleum gas was estimated at USD 128.48 billion in 2020, and it is expected to increase at a compound annual growth rate (CAGR) of 7.3% from USD 129.17 billion in 2021 to USD 211.96 billion in 2028.

The demand for LPG in India was 30.6 million tonnes in FY2021 and is expected to grow at a healthy CAGR of 1.78% until FY2030, when it is expected to reach 36.9 million tonnes.

Company Profile

Aegis Logistics incorporated in the year 1956 and plays a key role in India’s downstream oil and gas sector

The Company is engaged in providing logistic solutions for Oil Gas, Chemicals and Petrochemical Industries and operates a network of bulk liquid handling terminals, liquefied petroleum gas (LPG) terminals, filling plants, pipelines, and gas stations to deliver products and services

Company has Network of 142 Autogas stations in 10 states, and 290 LPG distributors across 140 cities in 15 states.

The company operates through its state-of-the-art Necklace of Liquid & Gas terminals across major ports of India having a storage capacity of 15,70,000 KL for Chemicals & POL and 1,14,000 MT of static capacity for LPG.

Why I Liked To study?

• Liquid Division: New capacity from acquisitions, volume and revenue growth, and capacity expansion
• Gas Division: Record Volume of 1 million metric tonnes handled
• Company Fixed Asset Jump in FY21 Rs 1711 Cr To Sep FY23 Rs 3766 Cr and Expected to Cross Rs 4200 Cr
• 55%-60% Import we are dependent and likely to create 25 mmt Gap by FY30 which brings an Opportunity for the Company due to market leadership
• Expect 15-20% EBITDA generation on the 4500-cr. capex investment over FY22-27

Business Model

Aegis Logistics Ltd, along with its subsidiaries, provides logistic solutions for oil, gas, chemicals and petrochemical industries. The business of the company can be divided into two broad segments, viz., liquid logistics division and gas division.

Business Segment –

• Liquid Division: Liquid Division Contributes 30% revenue and complete logistics services from sourcing, storing, moving and distributing products .Company LPG Sourcing done with JV of Itochu in Singapore and having terminal ports in Mumbai, Haldia, Pipavav & Kandla and also provides storage for Refrigerated Gas
• Gas Division: Gas Division contributes 70% revenue and Provides import, export, storage, and logistics services, handling Class A, B, and C products as well as all types of chemicals , POL Products and Vegetable Oils and have Tanks includes MS, SS, Epoxy Coated, IFR tanks with Pipeline connectivity with major clients like HPCL, BPCL, HPFR, BPFR and Oil installations in Sewree and Wadala and located at Mumbai, Kochi, Haldia, Pipavav, Kandla, Mangalore. Integrated LPG Supply Chain

Key Clientele & relationship

Competitive Strength

• Aegis Logistics is a leader in Oil Gas and Chemical Logistics and Creating India’s No. 1 private LPG Company
• Cost leadership in the LPG import market and lowering the delivered price to most competitive levels
• Aegis and Vopak propose to form a JV to take advantage of the numerous growth opportunities in the field of oil, gas and chemical logistics in India
• Large & Diversified Client Relationships
• Company has Network of 142 Autogas stations in 10 states, and 290 LPG distributors across 140 cities in 15 states

Future Outlook

• Completed Aegis-Vopak Joint Venture
• Executed important acquisition of 550,000 KL of Liquids capacity at Kandla port
• Kandla LPG terminal fully operational and The management anticipates that the Kandla terminal’s ramp-up will Drive throughput volumes to increase 20% YoY in FY24.
• Entry into JNPT port with 110,000 KL Liquids Terminal as first step is expected to be commissioned in mid-2024.
• Connection to LPG pipelines (KGPL and JLPL) secured for Pipavav & Kandla terminals
• Haldia Liquids expansion completed
• Additional LPG Pipelines installed at Jetties in Haldia and Mumbai
• Pipavav LPG bottling plant completed
• At Mangalore, work is presently in progress on Building the biggest cryogenic LPG terminal in India, which has a capacity of 80,000MT. The end of FY24 is also likely to see the commissioning of liquid capacity expansions of 50,000CBM at Kochi and 70,000CBM at Mangalore.
• The company maintains its guidance of Achieving a growth of 20% to 25% compared to the previous year
• Expect 15-20% EBITDA generation on the 4500-cr. capex investment over FY22-27
• Guidance: EPS growth of 25% (FY22 to FY27)

Risk

• For the period of 2023–2027, the JV has scheduled a capex programme of INR 45 billion, to be financed by debt, internal accruals, and a small amount of shareholder cash infusions. The focus will be diverted from the LPG business, which could increase uncertainty, and such a large and ambitious Capex will strain AGIS’s balance sheet.
• Moreover, the competition from private companies and oil marketing companies makes it difficult to ramp up LPG throughput.
• Needs To Monitor LPG Volume, Distribution and Sourcing QoQ & YoY any gap should be Closely monitored

Dis: Only For Educational Purpose