Aegis Vopak Term (AEGISVOPAK)

FairStock Score: 70/100 — STEADY

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

Key Financials

Strengths

• Piotroski F-Score of 8/9 and Altman Z-Score of 3.18 indicate solid financial health and low near-term bankruptcy risk.
• Debt/Equity of 0.42 is conservative for a capital-intensive storage business.
• Sales growth of 22.28% and profit growth of 62.72% show recent operating momentum.
• Promoter holding of 86.94% aligns management with long-term shareholders.
• Free cash flow is positive at ₹100 Cr despite investment needs.

Concerns

• At ₹193.35, the stock trades at P/E of 123.57 and P/B of 11.16 against ROE of only 10.65% and ROCE of 7.01%.
• EV/EBITDA of 533.96 and DCF intrinsic value of ₹48.28 suggest the market has priced in extremely optimistic future cash flows.
• Zero dividend yield means investors get no income support and depend entirely on price appreciation.
• Free cash flow of ₹100 Cr versus a market cap of ₹25,270 Cr offers a free cash flow yield below 0.5%, leaving no margin of safety.

AI Analysis

At ₹193.35, Aegis Vopak Term is not the sort of business Benjamin Graham would have called an investment. The market cap is ₹25,270 Cr, but the book value is only ₹17.33 per share, so I am paying over 11 times book for an enterprise earning 10.65% on equity and just 7.01% on capital. Those are not exceptional returns. The 62.72% profit growth and 22.28% sales growth are impressive on paper, yet a P/E of 123.57 means I am paying for years of perfect execution. The DCF intrinsic value of ₹48.28 is far below the current price; even if my estimate were conservative, the gap is too large to ignore. A zero dividend yield means all my reward depends on someone else paying more later—that is speculation, not value investing. There are positives. The balance sheet is healthy: debt-to-equity is only 0.42, Altman Z-Score is 3.18, and the Piotroski F-Score of 8/9 suggests strong financials. Promoter holding of 86.94% gives long-term alignment. Free cash flow of ₹100 Cr is positive, but against a ₹25,270 Cr market cap, that is a free cash flow yield below 0.5%. EV/EBITDA at 533.96 shows how thin the underlying cash earnings are relative to the enterprise price. Oil storage can be a steady, toll-like business, but it is capital-intensive and exposed to import volumes and tankage rates. At this valuation, the margin of safety is absent. In Buffett's terms, this is a wonderful industry? No—it's a decent business at an extraordinary price. I would need the price to fall substantially or returns on capital to rise sharply before it earns a place in a value portfolio.

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