Motilal Oswal Financial Services

23 June 2020

4QFY20 Results Update | Sector: Oil & Gas

Aegis Logistics

Estimate change

TP change

Rating change

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CMP: INR199

TP: INR245 (+23%)

Buy

Normalcy to return in 2HFY21; strong growth likely in FY22



Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

Financials & Valuations (INR b)

Y/E March

2020 2021E

Sales

71.8

77.4

EBITDA

2.8

5.9

Adj. PAT

1.0

3.5

Adj. EPS (INR)

3.0

10.4

EPS Gr.%

BV/Sh.INR

Ratios

Net D:E

RoE (%)

RoCE (%)

Payout (%)

Valuation

P/E (x)

P/BV (x)

EV/EBITDA (x)

Div. Yld (%)

FCF Yld (%)

-55.0

49.5

0.0

6.5

9.0

65.6

66.3

4.0

23.7

0.9

-4.2

247.4

57.6

-0.2

19.3

20.2

22.3

19.1

3.4

10.7

1.0

6.0

AGIS IN

334

67.5 / 0.9

267 / 108

2/33/5



2022E

91.1

6.8

4.1

12.4

19.7

67.2

-0.3

19.9

20.5

22.3

15.9

2.9

8.6

1.2

8.0



Higher-than-estimated other expenditure, combined with lower LPG throughput,

led to an EBITDA miss during the quarter. Due to COVID-19-led lockdown, LPG

logistics volumes were down 24% QoQ (up by a mere 3% YoY). The company kept

LPG terminals operational during lockdown to fulfill higher LPG demand.

Despite the impact of the shutdown witnessed in the quarter, LPG distribution

volumes were up 13% QoQ (+49% YoY), primarily aided by a surge in LPG cylinder

volumes (45% YoY) and LPG industrial volumes (+66% YoY). This was supported by

expansion in the company’s distribution network.

For FY20, the company recorded LPG logistics volumes growth of 20% YoY, and

LPG distribution volumes growth was up 44% YoY.

According to management, due to economic slowdown, expect the Liquids

segment’s volume to be flattish YoY in FY21. On the other hand, expect a boost in

gas volumes in 2HFY21 from the Uran-Chakan pipeline and Pipavav Railway Gantry.

With some minimal delay in project developments led by nationwide lockdowns,

the company is still expected to see gas throughput jump ~1.0mmtpa over the

next two years (on base of 3.0mmtpa in FY20).

We remain positive on the company’s Gas division and reiterate Buy.

EBITDA miss led by higher other expenditure



AGIS reported 4QFY20 EBITDA of INR930m (-10% YoY), 29% below est., on

higher other expenditure and lower LPG throughput.

The company recognized ESOP expenses of INR0.4b (in addition to INR1.9b

for 9MFY20). It continues to take an INR20m commission provision toward

the managing directors (in addition to INR60m for 9MFY20) in the other

expenses for the quarter.

Other income came in higher than estimated, resulting in PBT of INR860m

(flat YoY and QoQ). Tax rate for the quarter stood at 45.8% as the company

adopted the new lower tax rate (by realizing deferred tax assets).

PAT for the quarter stood at INR341m (-45% YoY).

EBITDA for Liquids increased 28% YoY to INR370m and EBITDA for Gas

increased 37% YoY to INR1,220m in the quarter.

Autogas volumes decreased 6% QoQ to 6.8kmt (4% YoY) due to lockdown in

the latter part of March. AGIS operates 115 stations, and the company had

earlier guided for ~200 stations over the next five years.

In FY20, EBITDA stood at INR2.8b (-25% YoY), PBT at INR2.1b (-31% YoY),

and PAT at INR1b (-55% YoY), with the tax rate at 35.5% for the year (due to

DTA benefits).

However, adjusting for ESOPs (of INR2.4b) and commissions (of INR0.8b),

adj. EBITDA was up 41% YoY to INR5.2b and PBT 50% YoY to INR4.5b (due to

higher other income); PAT stood at INR2.9b (+32% YoY).

The Liquids division’s EBITDA grew by 32% YoY to INR1.4b, primarily due to

ramp-up witnessed at the Kandla and Haldia terminals. The Gas division’s

EBITDA grew at 37% to 4.2b, led by a strong performance in the LPG

Logistics segment.

Shareholding pattern (%)

As On

Promoter

DII

FII

Others

Mar-20 Dec-19 Mar-19

59.6

60.6

2.7

2.4

2.3

12.5

12.4

25.3

25.6

24.7

Provisioning for ESOPs hurts bottom line in FY20



FII Includes depository receipts



Swarnendu Bhushan- Research Analyst

(Swarnendu.Bhushan@MotilalOswal.com); +91 22 6129 1529

Sarfraz Bhimani - Research Analyst

(Sarfraz.Bhimani@MotilalOswal.com); +91 22 6129 1566

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Aegis Logistics

Outlook for FY21 – expect normalcy from 2HFY21



Liquids business:

AGIS expects economic slowdown to impact chemical imports

in the country in the current fiscal, particularly in 1HFY20. Thus, the company

has guided that growth in the Liquids business would remain subdued in FY21.

Factoring the aforementioned, we have built in logistics at 0.69m KL (flat YoY in

FY21) and growth of 11% YoY to 0.76mn KL in FY22.

Gas business:

In April, imports from OMCs were higher (owing to higher LPG

demand). However, the current LPG inventory is huge as refineries have ramped

up their throughput gradually coming out of lockdown.

Thus, expect lower LPG imports by OMCs in the coming months. Also, company

expects 1QFY21 LPG throughout volumes to marginally decline (v/s 4Q).

Volumes at Pipavav are likely to be disturbed due to the ongoing Railway Gantry

project.

Expect the Uran-Chakan pipeline and railway gantry to add gas volumes in FY21;

volume additions would happen in 2HFY21 after some softness witnessed in

1HFY21. Factoring this, we have built in volumes at 3.2mmtpa for FY21 (v/s

3mmtpa in FY20) and ~4.1mmtpa in FY22.

Retail business:

The Auto segment saw a huge impact from the lockdown over

Apr–May; however some rebound in volumes has been observed in June as

states stagger out of lockdown. Karnataka, the largest market for the company,

is seeing good volume traction. For its Retail segment, the company expects

activity to return to normal only after 1HFY21.

ESOP expense is taken as credit against Reserves and Surplus in the balance

sheet, translating to no change in the company’s net worth.

The company has granted ~5.66m shares under ESOP for FY20; the same

number of shares (5.66m) would be issued in FY21 and FY22 each, resulting in

the total shares issued under ESOP at ~17m.

Expense under ESOP would be ~INR3.35b, of which ~INR2.4b has been

recognized in FY20, and INR0.93b would be recognized in FY21 and INR0.17b in

1QFY22. The ESOPs are only for senior employees, and promoters are not

eligible for it.

Over FY20–22, AGIS is expected to post a logistics volume CAGR of ~16%, with a

logistics EBITDA CAGR of ~18%. Logistics enhancement is also expected to help

the company ramp up its market share.

Logistics is expected to contribute ~60% to the Gas division’s total EBITDA in

FY22, led by improving utilization at the Mumbai, Pipavav, and Haldia LPG

terminals. Kandla would add to sales volumes from FY22 as the company is

already in talks with OMCs to pre-book volumes.

AGIS currently has an EBITDA breakup of 75% for Gas and 25% for Liquids. We

believe the EBITDA pie is set to incline more toward the LPG segment, which

also enjoys the increasing impetus of governmental schemes (i.e., PMUY). The

company further plans to set up an additional LPG terminal in southern India.

The stock trades at 15.9x FY22 EPS of INR12.4 and EV/EBITDA of 8.6x FY22E. The

company has declared final dividend of INR1.2/share (totaling INR1.7/share for

FY20). We value AGIS using the DCF methodology to arrive at a fair value of

INR245/share. Maintain Buy.

Three-year ESOP – a non-cash expense



Gas logistics – the next leg of profitability



23 June 2020

Aegis Logistics

Consolidated – Quarterly Earnings Model

Y/E March

Net Sales

YoY Change (%)

EBITDA

Margins (%)

Depreciation

Interest

Other Income

PBT

Tax

Rate (%)

MI & P/L of Asso. Cos.

Reported PAT

YoY Change (%)

E: MOSL Estimates

10,169

18.8

864

8.5

121

690

14.2

516

17.5

(INR m)

FY20 Var vs

4QE est (%)

21,881

-43%

18.1

1,319

-29%

6.0

175

-16%

180%

1,119

-23%

281

25.1

42%

749

-54%

21.4

FY19

FY20

FY19

FY20

14,259 13,205 18,526 19,553 18,177 21,686 12,417 56,158 71,833

14.9

-8.4

48.0

92.3

27.5

64.2 -33.0

17.2

27.9

887

926 1,031 1,020

-281 1,096

930 3,709 2,765

6.2

7.0

5.6

5.2

-1.5

5.1

7.5

6.6

3.8

125

129

131

159

170

172

187

505

687

262

331

195

328

710

758

865

839

-499

876

860 3,023 2,076

135

106

163

215

-157

284

394

502

736

19.0

14.0

18.9

25.7

31.5

32.4

45.8

16.6

35.5

125

307

344

489

591

617

570

-414

499

341 2,214

996

-6.1

10.5

27.9

10.3 -184.6 -15.6 -44.7

11.9 -55.0

Project development – slight delay due to COVID-19-led

shutdown



MUMBAI –

The long-awaited (HPCL’s) Uran-Chakan pipeline is finally complete,

and the first gas in the pipeline has started flowing from June. AGIS expects

incremental annualized volumes of ~500,000mtpa (taking the total throughput

to 1.2mmtpa) through this pipeline at full utilization.

PIPAVAV –

The company is building a railway gantry (and two additional spheres

of 1,900mt each). Nationwide lockdown from the last week of March led to

operational closure at Pipavav for six weeks; thus, the project is expected to be

delayed by three months and would be commissioned in 3QFY21.

AGIS expects incremental throughput of ~300,000–500,000mtpa via the rail

route. The Pipavav Gantry project would be cost lucrative for OMCs’ bottling

plants in northern India.

KANDLA –

The construction of a new LPG project at Kandla with a static capacity

of 45,000mt was halted from the end of March to 20

April. Despite worker

strength at just 50% of pre-COVID-19 levels, the project is progressing well;

however, it is expected to witness a two-month delay. Thus, it is likely to get

commissioned by the end of 4QFY21, and any earnings impact would only come

in FY22.

The project is on the grid of the Jamnagar-Loni Pipeline (JLPL) and the proposed

KGPL pipeline. Throughput of ~1,000,000mtpa is expected in the first full year of

operations (i.e., FY22), and another ~700,000mtpa would be the potential off-

take by OMCs once the pipeline is commissioned.

Liquid capacity expansion is on track:

the Haldia 12,000KL expansion is

expected to be completed by 1HFY21, Kochi 20,000KL by 1HFY21, and

Mangalore 50,000KL by FY21 (earnings impact to reflect only in FY22).

23 June 2020

Aegis Logistics

Key charts from the quarter

Exhibit 1: Gas division’s EBITDA up 37% YoY to INR1,220m

Gas Division EBITDA (INRm)

YoY change (%)

Exhibit 2: Liquids division’s EBITDA up 28% YoY to INR370m

Liquids Division EBITDA (INRm)

290

246 242

(5)

210

(20)

YoY change (%)

290

320 325

360 370

28 29

(8)

59 58

29 24

212 212

236 254

279 263

250

27 32 24

(21) (27) (10)

Source: Company, MOFSL

Exhibit 3: LPG sourcing volumes decreased 10% YoY

LPG Sourcing Volumes ('000 MT)

205

187

YoY change (%)

Exhibit 4: LPG distribution volumes grew 49% YoY

LPG Distribution Volumes ('000 MT)

YoY change (%)

41 40

(13)

(7)

(24) (11)

110 101

(10)

63 59

21 21

18 17

15 15 16

19 17 17 22

Source: Company, MOFSL

Exhibit 5: LPG logistics volumes grew 3% YoY

LPG Logistics Volumes ('000 MT)

YoY change (%)

Source: Company, MOFSL

23 June 2020

Aegis Logistics

Story in charts

Exhibit 6: Gas division’s contribution to increase

Segment-wise - EBITDA Breakup (%)

LPG

Liquids

Exhibit 7: Logistics account for major chunk of gas division

EBITDA

Gas Division - EBITDA Breakup (%)

Sourcing

Retailing & Distribution

Logistics

FY17

FY18

FY19

FY20

FY21E FY22E

FY15

FY16

FY17

FY18

FY19

FY20

FY15

FY16

FY21E FY22E

Source: Company, MOFSL

Exhibit 8: We expect EBITDA CAGR of 23% over FY19-22, led

by strong growth in LPG division

EBITDA (INRb)

Exhibit 9: Expect PAT CAGR of 23% over FY19-21

PAT (INRb)

1.4

FY15

1.9

FY16

2.1

FY17

2.7

FY18

3.7

FY19

2.8

5.9

6.8

1.0

FY15

1.1

FY16

1.2

FY17

2.0

FY18

2.2

FY19

1.0

3.5

4.1

FY20 FY21E FY22E

Source: Company, MOFSL

FY20 FY21E FY22E

Source: Company, MOFSL

Exhibit 10: Return ratios to stabilize ~20%

RoE (%)

RoCE (%)

Exhibit 11: One-year forward P/E

60.0

P/E (x)

Min (x)

Avg (x)

+1SD

Max (x)

-1SD

49.0

45.0

30.0

36.8

24.4

12.1

5.4

15.0

0.0

FY21E FY22E

15.9

FY15

FY16

FY17

FY18

FY19

FY20

Source: Company, MOFSL

23 June 2020

Aegis Logistics

Financials and valuations

Consolidated – Income Statement

Y/E March

Total Income from Operations

Change (%)

Total Expenditure

% of Sales

EBITDA

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

Other Income

PBT bef. EO Exp.

EO Items

PBT after EO Exp.

Total Tax

Tax Rate (%)

Minority Interest

Reported PAT

Adjusted PAT

Change (%)

Margin (%)

Consolidated – Balance Sheet

Y/E March

Equity Share Capital

Total Reserves

Net Worth

Minority Interest

Total Loans

Deferred Tax Liabilities

Capital Employed

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Goodwill on Consolidation

Capital WIP

Total Investments

Curr. Assets, Loans&Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability & Prov.

Account Payables

Other Current Liabilities

Provisions

Net Current Assets

Appl. of Funds

E: MOSL Estimates

FY15

39,160

-22.2

37,725

96.3

1,435

3.7

230

1,205

205

114

1,114

309

1,422

299

21.0

1,034

790

29.5

2.0

FY16

22,132

-43.5

20,279

91.6

1,853

8.4

234

1,619

177

1,527

265

17.4

128

1,133

43.4

5.1

FY17

39,328

77.7

37,259

94.7

2,069

5.3

243

1,826

161

1,717

377

22.0

137

1,203

6.1

3.1

FY18

47,910

21.8

45,250

94.4

2,660

5.6

343

2,317

152

2,248

110

4.9

160

1,978

64.5

4.1

FY19

56,158

17.2

52,450

93.4

3,709

6.6

505

3,203

262

3,023

502

16.6

307

2,214

11.9

3.9

FY20

71,833

27.9

69,067

96.2

2,765

3.8

687

2,078

331

328

2,076

736

35.5

344

996

-55.0

1.4

FY21E

77,371

7.7

71,480

92.4

5,891

7.6

781

5,110

379

354

5,085

1,281

25.2

344

3,460

247.4

4.5

(INR m)

FY22E

91,117

17.8

84,267

92.5

6,850

7.5

845

6,005

427

417

5,995

1,511

25.2

344

4,140

19.7

4.5

(INR m)

FY22E

340

22,113

22,453

906

2,736

309

26,404

21,116

5,775

15,340

3,271

19,289

514

5,759

10,035

2,981

11,590

4,899

6,464

227

7,699

26,404

FY15

334

3,940

4,274

264

2,181

189

6,908

6,540

2,139

4,401

137

339

213

4,276

204

2,012

1,054

1,007

2,459

1,979

379

101

1,817

6,908

FY16

334

4,711

5,045

393

1,883

229

7,550

6,951

2,371

4,580

137

734

3,537

115

972

967

1,482

1,442

894

402

145

2,095

7,550

FY17

334

8,038

8,372

292

2,548

879

12,092

10,078

2,614

7,464

3,127

9,743

218

7,059

623

1,844

8,264

6,778

1,374

112

1,480

12,092

FY18

334

11,739

12,073

697

2,824

705

16,299

15,756

2,957

12,799

1,256

8,059

260

3,469

1,620

2,710

5,841

3,788

1,918

135

2,218

16,299

FY19

334

13,579

13,913

748

1,865

834

17,361

16,728

3,463

13,265

1,207

104

9,688

338

2,285

4,129

2,936

6,926

4,853

1,927

146

2,762

17,360

FY20

340

16,206

16,546

906

2,156

309

19,917

21,116

4,150

16,966

2,201

9,946

421

4,540

2,634

2,350

9,290

4,016

5,096

179

655

19,917

FY21E

340

18,895

19,235

906

2,446

309

22,896

21,116

4,931

16,185

2,884

13,570

436

4,890

5,713

2,531

9,837

4,156

5,489

193

3,732

22,896

23 June 2020

Aegis Logistics

Financials and valuations

Ratios

Y/E March

EPS

Cash EPS

BV/Share

DPS

Payout (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/Sales

EV/EBITDA

Dividend Yield (%)

FCF per share

Return Ratios (%)

RoE

RoCE

RoIC

Working Capital Ratios

Fixed Asset Turnover (x)

Asset Turnover (x)

Inventory (Days)

Debtor (Days)

Creditor (Days)

Leverage Ratio (x)

Current Ratio

Interest Cover Ratio

Net Debt/Equity

Consolidated – Cash Flow Statement

Y/E March

OP/(Loss) before Tax

Depreciation

Interest & Finance Charges

Direct Taxes Paid

(Inc)/Dec in WC

CF from Operations

CF from Operating incl EO

(Inc)/Dec in FA

Free Cash Flow

CF from Investments

Inc/(Dec) in Debt

Interest Paid

Dividend Paid

CF from Fin. Activity

Inc/Dec of Cash

Opening Balance

Closing Balance

E: MOSL Estimates

FY15

2.4

3.1

12.8

0.8

24.5

83.5

64.7

15.4

1.7

46.8

0.4

2.2

20.3

16.8

18.5

6.0

5.7

1.7

5.9

0.2

FY16

3.4

4.1

15.1

0.9

31.9

58.3

48.3

13.1

3.0

36.1

0.5

1.4

24.3

21.0

24.0

3.2

2.9

2.5

9.2

0.2

FY17

3.6

4.3

25.1

0.7

22.4

54.9

45.7

7.9

1.7

32.8

0.4

-2.6

17.9

16.4

20.1

3.9

3.3

1.2

11.3

0.2

FY18

5.9

6.9

36.1

1.5

28.8

33.4

28.4

5.5

1.4

25.3

0.7

-3.0

19.4

17.7

20.3

3.0

2.9

1.4

15.2

0.1

FY19

6.6

8.1

41.7

1.4

24.3

29.8

24.3

4.7

1.1

17.2

0.7

12.7

17.0

17.9

21.1

3.4

3.2

1.4

12.2

-0.2

FY20

3.0

5.0

49.5

1.7

65.6

66.3

39.2

4.0

0.9

23.7

0.9

-8.2

6.5

9.0

10.0

3.4

3.6

1.1

6.3

0.0

FY21E

10.4

12.7

57.6

2.0

22.3

19.1

15.6

3.4

0.8

10.7

1.0

11.8

19.3

20.2

26.2

3.7

3.4

1.4

13.5

-0.2

FY22E

12.4

14.9

67.2

2.4

22.3

15.9

13.2

2.9

0.6

8.6

1.2

15.9

19.9

20.5

33.0

4.3

3.5

1.7

14.1

-0.3

(INR m)

FY22E

5,995

845

-1,511

356

5,695

-387

5,309

290

-427

-923

-1,403

4,322

5,713

10,035

FY15

1,422

230

123

-110

-118

1,547

1,223

-474

750

-128

-229

-199

-339

-767

329

725

1,054

FY16

1,527

234

122

-405

-76

1,402

1,384

-916

468

-641

-298

-177

-356

-831

-87

1,054

967

FY17

1,717

243

135

-287

-250

1,558

1,544

-2,401

-858

-2,354

982

-205

-311

467

-344

967

623

FY18

2,248

343

-110

258

2,808

-3,813

-1,005

-1,206

276

-152

-569

-605

997

623

1,620

FY19

3,023

505

180

-502

1,966

5,172

-919

4,253

-597

-959

-262

-538

-2,066

2,509

1,620

4,129

FY20

2,076

687

-736

612

2,641

-5,381

-2,740

-4,292

290

-331

-654

155

-1,495

4,129

2,634

FY21E

5,085

781

-1,281

4,611

-683

3,928

-329

290

-379

-771

-1,204

3,078

2,634

5,713

23 June 2020

Aegis Logistics

NOTES

23 June 2020

Aegis Logistics

Explanation of Investment Rating

Investment Rating

Expected return (over 12-month)

BUY

>=15%

SELL

< - 10%

NEUTRAL

< - 10 % to 15%

UNDER REVIEW

Rating may undergo a change

NOT RATED

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within

following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.

Disclosures

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the

Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial

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available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a

registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and

National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National

Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance

Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.

Details of associate entities of Motilal Oswal Financial Services Limited are

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http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf

MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and

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specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even

though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report

MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report

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Research Analyst views on Subject Company may vary based on Fundamental

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to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these

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located in Hong Kong & are not conducting Research Analysis in Hong Kong.

For U.S.

Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under

applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers

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Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-

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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.

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For Singapore

In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets

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Specific Disclosures

1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.

2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company

3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months

4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report

5 Research Analyst has not served as director/officer/employee in the subject company

6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months

8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months

9 MOFSL has not received any compensation or other benefits from third party in connection with the research report

10 MOFSL has not engaged in market making activity for the subject company

23 June 2020

Aegis Logistics

********************************************************************************************************************************

The associates of MOFSL may have:

- financial interest in the subject company

- actual/beneficial ownership of 1% or more securities in the subject company

- received compensation/other benefits from the subject company in the past 12 months

- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the

specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even

though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.

- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the

company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)

- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report

Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not

consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from

clients which are not considered in above disclosures.

Analyst Certification

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the

research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

Terms & Conditions:

This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and

may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent

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nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,

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report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial

instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as

customers by virtue of their receiving this report.

Disclaimer:

The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or

distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for

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in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.

The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment

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document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this

document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views

expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade

securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of

the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and

should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make

modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from

time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to

perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a

separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of

information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or

may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,

directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or

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regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in

all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost

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The person accessing this information specifically agrees to exempt MOFSL or any of its

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misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,

expenses that may be suffered by the person

accessing this information due to any errors and delays.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;

Website

www.motilaloswal.com.CIN

no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,

Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.

Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:

INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company

Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth

Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is

a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.

Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.

Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no

assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance

Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.

* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National

Company Law Tribunal, Mumbai Bench.

23 June 2020