Stock watch: Aegis Logistics

Aegis Logistics is a good stock to keep an eye on. In today's bearish market the scrip was down 5 per cent to Rs 185 as compared with its previous close of Rs 194.70. The scrip touched an intra-day high of Rs 195.

The company plans to expand its capacities and existing infrastructure. The company also plans to expand its activities in the lucrative business of auto LPG retailing.

The company is one of India's leading port logistics companies providing solutions for moving oil, gas and chemicals from manufacturers to end users. The company also provides logistics services for high value chemicals and pipeline handling for refineries.

Aegis is a pioneer in the marine (liquid) terminal business. The company has entered into contracts for pipeline and logisitcs services with major oil companies which will significantly boost revenues in the coming quarters.

In the recent years the company has moved into the distribution of speciality chemicals such as tertiary amines. Aegis plans to increase its exposure to this high margin specialised chemicals business which would thereby ensure better revenue and profitability for the company.

The sales of the company for FY05 was Rs 120.5 crore with a net profit of Rs 13.1 crore and EPS of Rs 8. Analysts believe that Aegis' businesses will see significant growth, improving its revenue and profitability.

They anticipate the company's FY06 sales to be around Rs 150.7 crore with a PAT(Profit after Tax) of Rs 24 crore and an EPS of Rs 14.7