The Hindu Business Line : Vizag port deal hopes push up Aegis

The market buzz is that Aegis Logistics is in an advanced stage of negotiations with the current leaseholder of a landed property at Visakhapatnam port for establishing its third liquid tank and storage facility.

The stock on Thursday closed at Rs 265.15, up 9.54 per cent, on the BSE with 2.1 lakh shares changing hands (2-week average 23,384 shares).

Aegis recently acquired controlling stake in Sealord Containers Ltd (also making open offer for additional 20 per cent stake), having 17 acres of land at Mumbai port.

According to market sources, the Mumbai acquisition is expected to double its business growth and the Visakhapatnam asset may treble the growth from the current level.

Grapevine has it that the land size at the targeted east coast port unit, which is understood to be sick, is slightly bigger than the Mumbai property.

Market sources said lowest P/E among logistics stocks (Gateway Distripark P/E is over 40 and South India Agencies has no earning) has also attracted a group of investors. "Because of their stable nature of business, logistics companies normally fetch high P/E. For example, P/Es of such stocks in South-East Asian region, usually rest at between 40 and 45", an industry analyst observed.

Jayanta Mallick

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