Aegis Logistics (AEGISLOG)

FairStock Score: 60/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding of 58.10% and debt/equity of 0.41 provide ownership alignment and balance-sheet comfort.
• ROE of 16.62% and ROCE of 13.20% indicate decent capital efficiency.
• Profit growth of 33.13% and latest quarter net profit of ₹233 Cr on ₹1,725 Cr sales show earnings momentum.
• Piotroski F-Score of 8/9 points to strong recent financial health.
• 5-year revenue CAGR of 11.97% gives a reasonable growth track record.

Concerns

• Free cash flow is deeply negative at ₹-905 Cr; reported earnings are not translating into cash.
• Valuation is rich: P/E 31.41, P/B 5.34, EV/EBITDA 116.36, and PEG 2.06 leave little room for error.
• Margin of safety versus Graham Number is negative 169.89%, with the stock at ₹704.85 versus ₹255.09.
• Sales growth of 7.95% is far below profit growth of 33.13%, and Altman Z-Score of 2.76 is only in the caution zone.

AI Analysis

I approach Aegis Logistics the way I would any business: is it a good enterprise, does it earn well, and am I paying a sensible price? The numbers show a reasonably profitable operator. Return on equity is 16.62%, return on capital is 13.20%, debt/equity is just 0.41, and promoter holding of 58.10% aligns interests reasonably well. The Piotroski F-Score of 8/9 suggests recent financial health is sound. Profit growth of 33.13% is impressive, though sales growth is only 7.95%, so much of it appears to be margin or other gains rather than broad top-line compounding. Over five years, revenue grew at an 11.97% CAGR, which is respectable but not spectacular. The balance sheet is not troubling. But the valuation genuinely bothers me. At ₹704.85, the P/E is 31.41 and P/B is 5.34. Graham's number is ₹255.09, meaning the margin of safety is negative 169.89%. That is the opposite of what a value investor wants. Even adjusting for quality, EV/EBITDA at 116.36 is absurdly expensive unless earnings inflate dramatically. Free cash flow is negative at ₹-905 Cr, so reported profits are not translating into cash an owner can bank. I cannot value a growing gas logistics business with confidence while cash is going out the door. This might be a fine company, but a fine company at any price is not a fine investment. I would wait for stronger cash generation, a cheaper price, or evidence that sales growth has caught up with profit growth. Until then, I pass.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer