**Motilal Oswal’s research report on [Aegis Logistics]
Aegis Logistics (AGIS) reported a miss on our estimates, primarily due to a drop in the Gas business, while the Liquids business performed robustly. The Gas Logistics business was impacted as AGIS reported a shift in BPCL volumes from its Haldia LPG terminal to its recently commissioned terminal. Aegis clocked higher movement of LPG wagons at its Pipavav railway gantry and signed BPCL as a second customer (apart from IOCL). The Mumbai LPG terminal is operating at the maximum level since Dec’20. The Liquids business saw margin expansion in 4Q with the handling of higher margin products. The Mangalore (+50,000kl) and Haldia (+54,000kl) liquid terminals are expected to be commissioned in 1QFY22; Kochi (+20,000kl) is expected to be commissioned in 2HFY22. These expansions are likely to result in better margins as well, as capacity has already been presold (unlike in the past).
We cut our FY22E/FY23E EPS estimate by 5%/2% to account for sales loss due to the ongoing lockdown. We maintain our Buy rating with a TP of INR980/share (Mar’23E SoTP).