Anand Rathi recommends Aegis Logistics at the current market price of Rs 133.Aegis Logistic (ALL), India's leading logistics service company offers essential services in areas of tank storage & terminalling, chemical distribution, gas & petro storage distribution & marketing, logistics management services etc.With a strong and sustainable economic growth underway, there is a huge potential for growth in the domestic logistics business.Expertise of ALL in handling various hazardous chemical makes it a preferred choice for liquid chemical players, especially in the new product services launched like IPA and NBA.ALL has sought to increase its handling capacity at its Pir Pau site to keep pace with the higher volumes growth and match the present acute capacity constraints. 50% of the capacity is already contracted under long-term contracts ensuring a consistency of revenue stream.The recent acquisition of 6.87 lakh shares in Sealord Containers and the subsequent acquisition of 20% stake through open offer (which would total to 75% in Sealoard) would provide additional impetus to revenue growth.TECHNICAL VIEWOn 5 May, 2006, Aegis posted a high of Rs 308.90 and thereafter it reacted quite sharply to post an intra day low of Rs 111.30. With this sharp fall the RSI line has enetered the oversold zone, indicating the possibility of a correctivce throw back in the near future.Based on the chart pattern developed to date, the scrip finds support at around Rs 111.30. On the resistance front, the scrip faces resistance at around Rs 155 and thereafter at around Rs 180.
