Buy Aegis Logistics; target of Rs 254: CD Equisearch
CD Equisearch’s research report on Aegis Logistics
According to the Economic Survey of India 2017-18, Indian logistics sector is expected to reach USD 215 bn by 2020 from the current worth of USD 160 bn, thanks to the towering needs of businesses to transport goods and services with best-in-class infrastructure and effective logistics management system. With increased plan outlay of the government, improved infrastructure facilities and greater access to global markets, the GOI aims to improve India’s ranking from 44 in World Bank Logistics Performance Index.
We expect it’s PAT to rise by 14.0% on an average over the next two years. In view of its recent performance, we have reduced our current fiscal’s EPS by 12.1% (Rs 6.27 vs Rs 7.14 earlier). We assign ‘buy’ rating on the stock with target price of Rs 254 (previous target Rs 286) based on 33x FY20e EPS of Rs 7.70.
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