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Full report - Aegis good long term Stock - 4x Potential

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CMP 305
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About the Company

Its India’s leading integrated Oil, Gas & Chemical Logistics company and one of India’s top Importers and Handlers of LPG amongst private players. The company operates through its state-of-the-art Necklace of Liquid & Gas terminals across major ports of India having a storage capacity of 15,70,000 KL for Chemicals & POL and 1,14,000 MT of static capacity for LPG.

Group was founded in 1956 and is headquartered in Mumbai. It is a publicly traded company listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). As a dominant parallel marketer of Liquefied Petroleum Gas (LPG), It has a robust presence in India. The company has a strong spread of Autogas dispensing Retail Outlets along with a wide network of distributors who sell LPG Cylinders and Appliances to Domestic, Commercial, and Industrial customers. It also provides LPG Installation and Interfuel services that maximize the efficiency and cost benefits of LPG to large industries looking to transition from other fuels to LPG. Company's LPG is known and respected for its commitment to quality, reliability, safety and assured supplies at all times.


About Royal Vopak - Dutchlands
Royal Vopak is the world’s leading independent tank storage company. We store vital products with care. With over 400 years of history and a focus on sustainability, we ensure safe, clean and efficient storage and handling of bulk liquid products and gases for our customers. By doing so, we enable the delivery of products that are vital to our economy and daily lives, ranging from chemicals, oils, gases and LNG to biofuels and vegoils. We are developing key infrastructure solutions for the world’s changing energy and feedstock systems, while simultaneously investing in digitalization and innovation. Vopak is listed on the Euronext Amsterdam and is headquartered in Rotterdam, the Netherlands.

Indian partnership Aegis Vopak Terminals successfully completed -JV with Vopak (51% owned by Aegis)
Mumbai, India / Rotterdam, the Netherlands, 25 May 2022

Aegis Vopak Terminals will become the largest independent tank storage company for LPG and chemicals in India. LPG is earmarked by the Indian government to provide cleaner and safer cooking fuels for households. Since the announcement in July 2021, 3 additional terminals with an additional capacity of 490 thousand cbm are being included in the partnership. The partnership operates a network of 11 terminals that are located in five strategic ports along the east and west coast of India with a total capacity of approximately 1.5 million cbm.

The joint venture is well positioned for further growth, which targets mainly LPG but also chemicals, LNG and industrial terminal opportunities.

Vopak financials
Vopak’s net consideration stands @ EUR 137 million. Normal Purchase Price Allocation (PPA) accounting will apply, including recognition of goodwill as part of the carrying amount of the joint venture and associate.


Globally the industry is moving from high emission traditional fuels to highly efficient green and clean fuels like LPG. LPG is the best and cheaper fuel compared to petrol and electricity.

LPG for Home
Aegis Chhota Cikander is your partner for all your domestic LPG needs. offering a domestic range of 2kg, 4kg, 12kg and 15kg cylinders to suit all your cooking requirements.

Get a new LPG connection with Chhota Cikander quick and hassle-free. The process involves minimal paperwork and on-time delivery, so you can focus on perfecting those great recipes you’ve been working on!


2 Kg CHHOTA CIKANDER CYLINDER AND COOKTOP
4 Kg CHHOTA CIKANDER CYLINDER AND COOKTOP
12 Kg & 15 Kg CHOTTA CIKANDER
LPG HOSE PIPE AND 12 Kg REGULATOR


State of the art LPG products from Aegis has been conceptualised and designed keeping customers in mind, Consumer insights are taken from users through various touch points to make products user friendly and efficient. Aegis products are designed to meet best standards in terms of safety and quality for complete peace of mind for its Customers.


LPG for Hotels
LPG is an Efficient, Versatile Energy Source for Hotels and Restaurants. Most chefs make no secret of the fact that they prefer cooking with Aegis gas because of its distinct advantages over other fuels. The instant heat, controllable flame and clean burning qualities are far superior. Your customers will appreciate the great food taste too. With Aegis Puregas efficient and hassle-free services, Your partnership with us is bound to make your Business grow.


15 Kg, 17 Kg & 21 Kg CYLINDERS

33 Kg VOT(Vapour offtake)


Gas Logistics
Aegis Group is a major player in sourcing and distribution of Liquefied Petroleum gases (LPG and propane) in India. The services offered include complete supply chain management from product planning, sourcing, and shipping, through to receipt, storage, and despatch. These services are provided using our terminals at Ports of Mumbai, Pipavav and Haldia and efficient sourcing through our Singapore based trading JV with Itochu Corp. of Japan. With this infrastructure and expertise, Aegis handles more than 3 million MTs of LPG per annum.

Under this business segment, the customers are mainly the Public Sector Oil Companies like HPCL, IOCL & BPCL.

Aegis Group also caters to a wide range of LPG consuming Industry sectors like steel, automobile, petrochemicals etc. Some of customers include Godrej, Arcelor Mittal, Piaggio Vehicles, Brahmaputra Crackers & Polymers Ltd., FIAT, Jindal Steel etc

LPG Trading

Under this segment, we supply LPG, Propane and Butane in sectors such as Steel, Automotive, Ceramics, Glass, Pharmaceuticals, Aerosol, Paper & Textile. We have expertise and experience in providing an efficient & economical energy solution to industries for their various applications which include cost effective turnkey solutions on BOOM/BOOT basis for conversions from other fuels/energy sources and for Customers building new LPG/Propane storage and usage installations.

LPG for Industries

LPG is a highly efficient energy source which is not only safe, but also saves on fuel & maintenance costs. Aegis offers all our customers a wide range of solutions, ensuring they benefit from our expert knowledge on LPG products & services.

Industrial Applications of LPG
Aluminium Melting Aluminium Heat Treatment Case Hardening Powder Coating
Roto Moulding Endo Gas Generation Hot Dip Galvanizing Seed Drying


33 Kg VOT
33 Kg LOT(liquid offtake)
425 Kg - MAGNA
BULK LPG SUPPLIES FOR INDUSTRIAL APPLICATIONS

LPG Installation

Majority of the Industrial customers rely on Aegis Puregas as their trusted partners for LPG supplies. Aegis not only imports and supplies reliable & pure LPG, but also has an expertise in designing, constructing and maintaining the manifold systems, underground and mounded storage tanks for industrial applications. We initiate and enable the LPG installation on Build-Own-Operate-Maintain (BOOM) basis, thus providing a hassle-free end to end fuel management to our customers. Aegis has its own in-house team and approved vendors to give round the clock servicing to its valued clients.

Interfuel Conversions
Globally the industry is moving from high emission traditional fuels to highly efficient green and clean fuels like LPG. LPG is the best and cheaper fuel compared to petrol and electricity. Highly experienced Team will helps to choose the right combustion system, appropriate controls and equipment, right certified vendor and assist you with the process of conversion.

Provides product handling services at our various terminal across India for LPG. These services are mainly provided to the Public Sector Oil Companies viz. Hindustan Petroleum, Indian Oil & Bharat Petroleum as they are the major importers of LPG into India. Our terminals are located at Pipavav, Mumbai, Haldia & Kandla.With this, Aegis is the only terminal operator in the Private Sector to have LPG import terminals at four locations in India. Through these terminals, Aegis has gained expertise in despatching the product through all the possible modes of transport i.e. Road, Rail and Pipeline which is again a rare feat in the LPG market in India.
Our strength lies in timely and safe receipt and despatch of our customer's product which is paramount in case of such a sensitive product.
We are also capable of providing storage services for other similar gases like Butene-1, Butadiene, Propylene, VCM etc. Some of the customers who avail these services include Brahmaputra Crackers & Polymers Ltd., ONGC, Petro Additions Ltd, Reliance etc.

Aegis Autogas has partnered with Nayara Energy Ltd. (formerly known as Essar Oil Ltd.) to set up facilities for MS/HSD (Petrol & High Speed Diesel) , as well as partner with existing and new customers in the retail market. This partnership gives an edge in the industry and empowers the expansion of footprint throughout the country. Nayara Energy is a fully integrated oil and gas company with a strong presence in India as well as globally.

Aegis Autogas is a world-class Auto-LPG provider that has been delivering high quality LPG to customers in 10+ major states of India since 2005. The company has its own in-house dedicated team of experienced maintenance engineers who ensure safe operations and maintenance of all gas stations on a real time basis.

Aegis Group owns and operates a network of shore based tank farm installations for handling of bulk liquids for Petroleum, Oil, Petrochemical, Chemical and Vegetable Oil Industry. These terminals are located in Port of Kandla, Pipavav, Mumbai, Mangalore, Kochi, and Haldia. The Group is a pioneer in handling of hazardous chemicals, petroleum products, and petrochemicals with excellent track record of safe operations.

Necklace of Terminals

HALDIA GAS TERMINAL (WEST BENGAL)
Recently commissioned in 2017
Catering to NOCs viz. HPCL and BPCL for handling LPG
Total Storage Capacity : 2 x 12,500 MT Cryogenic storage
Connected to the HOJ-1 and HOJ-2 at the Port
Dispatch through Road Tanker. The terminal will be connected to the LPG Rail Loading facility and barge jetty for Inland waterways movement, which are being planned by the Port
Connected via pipeline to Aegis bottling plant with 24-head Carousel and a capacity of 10,000 MT per Month, catering to the LPG Industry
Itochu Corp. Vopak have shareholding of ~25% & ~24% respectively in this terminal.

KANDLA GAS TERMINAL (GUJARAT)
Presently under construction with a view of catering to Oil Marketing companies
The LPG terminal is located at Deendayal Port, in close proximity of Indian Oil LPG import terminal
Total Storage Capacity : 2 x 24,000 MT
Connected to present LPG jetty OJ-1 and shall also be connected to the upcoming VLGC jetty OJ-7
The integrated terminal is encompassed within ~30 Acres area
This terminal is part of Aegis Vopak Terminals Ltd.
The facility was successfully commissioned in early 2022.

PIPAVAV GAS TERMINAL (GUJARAT)
This terminal came into Aegis fold as part of takeover of Shells LPG Business in India in 2010
Providing service to NOCs viz. HPCL, IOCL & BPCL for storing LPG and to RIL, OPAL & BCPL for handling Butene-1
Total Storage Capacity : ~20,000 TMT 12 Pressurized Horton spheres.
Connected to the Liquid jetty of GPPL, a Port operated by APM Group.
Dispatch through Road Tanker and Round-the-clock LPG Rail loading facility available for Industry usage
Identified as one of the source locations of LPG for the upcoming Central India Pipeline for LPG movement
This terminal is part of Aegis Vopak Terminals Ltd.
The facility came into Aegis fold as part of takeover of Shell's LPG Business in India in 2010

KOCHI LIQUID TERMINAL (KERALA)
Terminal classified for handling Class A, B, and C products
Terminal capacity is 51,000KL comprising of 20 tanks which include Mild Steel and Internal Floating Roof (IFR) tanks
Ethanol blending system
High Capacity Export Pumps
12 tank lorry filling bays
One electronic weighbridge with maximum capacity of 40 MT
Jetty Pipelines 2x12” diameter and 1x10” diameter Mild Steel(MS)
Connected to Q4 berth of Cochin Port Trust


MUMBAI GAS TERMINAL (MAHARASHTRA)
Operational since 1997.
Providing service to NOCs viz. HPCL, IOCL & BPCL and Private players viz. Reliance, Total Oil, SHV etc.
Total Storage Capacity : 2 x 10,500 MT Cryogenic storage.
Connected to First Chemical Berth and VLGC compliant Second Chemical Berth.
Capable of handling Segregated Propane and Butane with the requisite blender facilities.
Dispatch through Road Tanker and Pipeline.
Connected to Mumbai-Uran-Chakan Industry Pipeline.
Connected to RIL's Nagothane plant via a 72-km sub-sea pipeline.

MANGALORE LIQUID TERMINAL (KARNATAKA)
Terminal classified for handling Class A, B, and C products
Terminal capacity is 75,800 KL comprising of 5 tanks which include Mild Steel and Internal Floating Roof (IFR) tanks
High Capacity Export Pumps
4 tank lorry filling bays
One electronic weighbridge with maximum capacity of 60 MT
Jetty Pipelines 3x12” Mild Steel(MS) pipelines
Connected to Berth no 12 of New Mangalore Port Trust




Liquid logistics (33% of FY22 EBITDA):[4] AGL provides import, export, logistics, and storage services for all types of liquid chemicals, petroleum products, and vegetable oils. The company has terminals in six ports (Mumbai, Kandla, Pipavav, Mangalore, Haldia, Kochi) with total operational capacity of 729,000 KL[5]

LPG Segment (67% of FY22 EBITDA)[4]: The company has a presence across the entire value chain starting from sourcing (through JV with Itochu[6]), terminalling, to finally distribute LPG to both industrial and retail clients. Total LPG static capacity is 112'000 MT with annual throughput of 9'600'000 MT. [7] Gas sourcing remains a major contributor of revenues, but profit margins are small as the company earns only a fixed sum for its service.

LPG sourcing JV with Itochu:[8] AGL has a joint venture with Itochu Corporation, a Japanese multinational, for LPG gas sourcing where Itochu helps Aegis source LPG at a cheaper price. Currently, Aegis has a 15.5% market share in LPG imports in India which they plan to take to 25% in the next few years.[9]

LPG Retailing:[10] Company operates its LPG retailing business through 135 Autogas stations in 10 states with a plan to expand to 200 stations in 20 states and has a network of 262 LPG distributors across 100 cities in 14 states.[2] Aegis also operates 37 LPG bottling plants through their supply to both commercial and domestic LPG markets. LPG retailing is the highest profit margin segment [11]

Marine Division [18] Co. launched its Marine Products Division in January 2012, to provide quality bunker fuels to ships calling at Indian ports, and its Customer Value Proposition is to service the fuel requirements of ships and it manages the division through its wholly-owned subsidiary Aegis International Marine Services Pte. Limited



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注释
9th July 2023
High 970

8 Months
305 to 970 = 3X +
Beyond Technical AnalysisFundamental Analysis

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Sebi RA
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