Motilal Oswal Financial Services

Aegis Logistics

BSE SENSEX

38,140

S&P CNX

11,215

23 July 2020

Update | Sector: Oil & Gas

CMP: INR192



TP: INR250 (+30%)

Buy

Reality check on LPG demand v/s imports – favors AGIS

LPG has been in ever-increasing use as the need for cooking gas increased amid the

lockdown and owing to various government schemes. For this reason, LPG

consumption growth came in strong at 12–16% YoY over Apr–June, while demand for

other fuels tanked to 30–60% of normal during this period. This led to a huge jump in

LPG imports at ~65% of total LPG consumption as refineries trimmed their operating

rates due to the lack of demand.

The story for the last three months is similar to that for the last three years – in 2016,

the government introduced the Pradhan Mantri Ujjwala Yojana (PMUY), which led to

a huge spike in LPG consumption. Although, for AGIS, investors have been wary of

capacity utilization amid increasing competition.

In light of the same, we highlight the potential for increase in LPG imports (by ~2.7x

to 36.5mmtpa) despite a rise expected in domestic refining capacity (by ~1.5x to

367mmtpa) by FY31. Moreover, there is huge gap in the per connection consumption

of gas by domestic consumers (with expected demand jump of 6.7mmtpa).

Factoring the above-mentioned fundamentals in favor of the company, we reiterate

Buy on AGIS, with target price of INR250.

Stock Info

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

Free float (%)

AGIS IN

334

65.1 / 0.9

267 / 108

-11/-1/-5

40.3



Motilal Oswal values your support in

the Asiamoney Brokers Poll 2020 for

India Research, Sales and Trading

team. We

request your ballot.



Longing for LPG imports and…



Financials Snapshot (INR b)

Y/E March

2020 2021E 202E

Sales

71.8

81.7 96.2

EBITDA

2.8

5.9

6.9

Adj. PAT

1.0

3.5

4.2

Adj. EPS (INR)

3.0

10.4 12.5



EPS Gr.%

-55.0 249.6 19.7

BV/Sh.INR

49.5

57.6 67.3

Ratios

Net D:E

0.0

-0.2 -0.3



RoE (%)

6.5

19.5 20.0

RoCE (%)

9.0

20.3 20.6



Payout (%)

65.6

22.3 22.3

Valuation

P/E (x)

64.2

18.4 15.4

P/BV (x)

3.9

3.3

2.8

EV/EBITDA (x)

23.0

10.3

8.2

Div. Yld (%)

0.9

1.1

1.3

FCF Yld (%)

-4.3

6.3

8.3

Shareholding pattern (%)

As On

Jun-20 Mar-20 Jun-19

Promoter

59.7

59.6

60.6

DII

2.8

2.7

2.4

FII

12.8

12.5

12.7

Others

24.8

25.3

24.4

FII Includes depository receipts



Coming decade will mark the period of domestic refineries expansion. Refining

capacity, which stands at 250mmtpa in FY20, is expected to grow at a CAGR of

4% and reach 367mmtpa in FY31. Projects of ~117mmtpa (i.e. ~2x FY11–20) are

lined up to be commissioned by FY31; however, just one-fourth the capacity

has a clear timeline / has seen work commence.

LPG yield from refineries has been in the range of 4.5–4.9% over the last 10

years, and may decline with increasing focus of refiners on producing

petrochemicals.

LPG consumption in India saw a CAGR of ~7% over FY11–20 (with FY16–20

registering CAGR of 8% owing to the introduction of PMUY in 2016).

Assuming LPG yield of 5% and a demand CAGR of 7% over the next decade,

our calculation suggests imports could see a CAGR of 10% over FY21–31.



LPG production is expected to increase ~1.5x (to 18.5mmtpa) by FY31,

while imports could see an increase of ~2.7x (to 36.5mmtpa) over this

period.



The above scenario assumes that all of the refinery expansion projects

would get commissioned by FY31; although, considering only those

projects where work has already commenced, the estimated imports CAGR

over FY21–31 could be ~12%.

Reflecting over FY11-20, despite a ~34% increase witnessed in domestic

refining capacity, the percentage import of LPG increased to ~56% in FY20 from

~21% in FY10 (clocking double the CAGR of demand at ~14%). Our calculation

highlights a similar story going into the next decade as well.

This should benefit

AGIS the most as it is very well placed to cater to the huge

potential of imports from its various terminals facilitated through pipelines or

railway gantry v/s traditional off-lift via trucks (in smaller quantities).

Swarnendu Bhushan- Research Analyst

(Swarnendu.Bhushan@MotilalOswal.com)

Sarfraz Bhimani - Research Analyst

(Sarfraz.Bhimani@MotilalOswal.com)

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

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

Aegis Logistics

Stock Performance (1-year)

…huge gap in per connection consumption…



Since the introduction of PMUY in 2016, LPG coverage in India is said to have

reached ~98% currently (from just ~56% in FY15). However, the quick

development of the scheme has somewhere failed to address the challenges

related to LPG adoption faced by poor households.

The per connection consumption of gas fell ~22% to 6 cylinders (of 14.2 kg) per

year in FY20 from 7.7 cylinders per year in FY15

(despite a ~47% jump in total

LPG consumption over the same period).

Assuming an increase in the per

connection usage of LPG to 7.7 cylinders per year, we could easily see a

demand jump of ~6.7mmtpa (which is ~25% of FY20 demand).

To put the aforementioned factor in perspective, AGIS handled 3mmtpa of LPG

imports at the end of FY20 (~20% of total imports). Post the completion of the

current expansion at Kandla, the company’s LPG throughput capacity is

expected to reach 9.2mmtpa.

Thus, AGIS could achieve optimum utilization at

its four LPG terminals with increase in per connection consumption to FY15

levels (3 + 6.7 = 9.7mmtpa).

This would also help the company achieve its target

market share of 30–33% in the near-to-medium term.

As presented above, despite massive additions to domestic refining capacity,

the proposed new LPG terminals are too few to meet the major requirement of

LPG imports in the country.

BPCL’s Haldia LPG terminal (with capacity of 30,000mt) is running behind

schedule and has a very huge capex of INR12b (v/s AGIS’ capex of INR2.5b for

25,000mt for its LPG terminal at Haldia).

As per our channel checks, Adani Mundra, which was commissioned recently, is

operating at just ~20% of its 5mmtpa capacity. We believe volume throughput

would see a very slow ramp-up as the company moves volumes only via trucks.

Nevertheless, AGIS enjoys a long-standing legacy relationship with OMCs,

while concurrently enjoying the strategic positioning of its terminals.

Also, the LPG bottling capacity is expected to increase by 54% over the next two

years to 25.8mmtpa, and AGIS’ terminals are well-placed with enhanced

connectivity through pipelines (Mumbai and Kandla) or railways (Pipavav).

AGIS has been a key beneficiary of the government’s initiative to boost the

penetration of LPG in the country.

We expect logistics volumes to record a CAGR of 16% over FY20-FY22 (on a

conservative basis), with logistics EBITDA CAGR of ~18% over the same period.

The company plans to fund capex through internal accruals. We expect strong

free cash flow generation of ~INR9.4b in FY21-FY22 combined

(FCF yield of

~15%). Return ratios are likely to hover above 20% over the same period.

Also, the non-cash expense overhang of ESOPs at ~INR3.35b is behind, with

~INR2.4b recognized in FY20; only INR0.93b and INR0.17b would be realized in

FY21 and 1QFY22, respectively.

AGIS trades at 15.4x FY22E EPS of INR12.5 and 8.2x FY21E EV/EBITDA. We

expect a CAGR (FY19–22) of 23% in EBITDA and EPS. We value AGIS using the

DCF methodology to arrive at a fair value of INR250/share. Maintain Buy.

…while competition remains at bay…



…to favor AGIS the most – Reiterate Buy



23 July 2020

Aegis Logistics

Exhibit 1: Refinery additions/expansions planned for next 10 years; although LPG imports to increase by 2.7x…

LPG production

HPCL Mumbai (+2mmtpa)

LPG consumption

CPCL (+9mmtpa)

Rajasthan refinery (+9mmtpa)

IOCL three refineries

(+14mmtpa)

LPG imports

BORL (+7.2mmtpa)

Total refining capacity (RHS)

West coast (+60mmtpa)

420

340

260

180

100

NRL (+9mmtpa)

HPCL Visakh (+6.7mmtpa)

FY20

FY21

FY22

FY23

FY24

FY25

FY26

FY27

FY28

FY29

FY30

FY31

Source: PPAC, MOFSL

Exhibit 2: …registering CAGR of 10–12% over the same period

Including all the proposed refinery projects

Refining throughput

Consumption CAGR

Import CAGR

Consumption CAGR

Import CAGR

Including only work started refinery projects

Refining throughput

Consumption CAGR

Import CAGR

Consumption CAGR

Import CAGR

FY21-25

3.10%

7.00%

10.50%

8.00%

12.20%

FY21-25

2.40%

7.00%

11.00%

8.00%

12.60%

FY26-31

4.80%

7.00%

10.50%

6.00%

8.60%

FY26-31

0.00%

7.00%

12.60%

6.00%

10.70%

Remarks



<--last decade CAGR

<--last five year CAGR for next five years



<--i.e. excluding projects with unclear timelines

<--last decade CAGR

<--last five year CAGR for next five years

Source: PPAC, MOFSL

Exhibit 3: LPG coverage increases to 97.5% in FY20…

LPG coverage (estimated) (%)

LPG domestic active customers (mn)

224.3

265.4

278.7

Exhibit 4: …while per connection consumption decreases

per customer domestic consumption (14.2kg cyl.)

LPG consumption (mmt)

19.6

21.6

23.3

24.9

26.4

148.6

166.3

198.8

18.0

FY15

FY16

FY17

FY18

FY19

FY20

7.7

FY15

7.5

FY16

6.9

FY17

6.6

FY18

6.0

FY19

6.0

FY20

Source: PPAC, MOFSL

23 July 2020

Aegis Logistics

Exhibit 5: LPG imports constitute 56% of total consumption

'000 mt

(2)

2.7

4.5

5.8

6.3

6.6

8.3

9.0

Consumption

Imports

% imports of consumption

Exhibit 6: …despite ~34% increase in refinery production

LPG of total imports

LPG production

LPG yield (%)

4.5

4.6

4.9

Total production

4.9

4.7

4.5

4.6

160

140

11.0 11.4

13.2

14.8

120

100

2.5% 3.1% 3.1% 3.2% 3.9% 3.9% 4.4% 4.4% 5.1% 5.5%

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

*Total and LPG production are indexed Source: PPAC, MOFSL

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Source: PPAC, MOFSL

Exhibit 7: LPG coverage by regions – Northeastern and eastern being least prolific

India currently has only

~6.1m PNG connections v/s

~278m LPG connections.

Also, the northern and

northeastern parts of the

country remain least prolific

– the prime retail focus area

for Aegis Logistics.

North

South

112%

105%

98%

91%

88%

84%

LPG coverage (%)

North East

West

East

Total

Source: PPAC, MOFSL

Exhibit 8: PPAC primary survey snapshot

Source: PPAC, MOFSL

23 July 2020

Aegis Logistics

Modes of bulk LPG transportation

Road

Pipelines

Railways

Three ports driving AGIS’ pragmatic growth potential



38%

56%



MUMBAI –

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

and the first gas in the pipeline started flowing from June.

AGIS expects

incremental annualized volumes of ~500,000mmtpa

(taking the total

throughput to 1.2mmtpa) through this pipeline at its full utilization.

PIPAVAV –

AGIS is building a railway gantry (and two additional spheres of

1,900mt each). Nationwide lockdown 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

300,000–500,000mmtpa via the rail route.

The Pipavav Gantry project would be

cost-lucrative for OMCs’ bottling plants in northern India.

KANDLA –

A static capacity project of 45,000mmt is expected to be completed

by 4QFY21. The project is on the grids of the

Jamnagar–Loni Pipeline (JLPL)

and

the proposed Kandla–Gorakhpur LPG Pipeline (KGPL).

Throughput of

~700,000mmtpa is expected in the first full year of operation (FY22),

and

another ~700,000mmtpa would be OMCs’ potential off-take once the pipeline is

commissioned.

Exhibit 9: LPG terminals, pipelines, and refineries – Snapshot of India

Source: IOCL, PPAC, MOFSL

23 July 2020

Aegis Logistics

Story in charts

Exhibit 10: Gas division’s EBITDA mix to improve…

Segment-wise - EBITDA Breakup (%)

LPG

Liquids

FY15

FY17

FY18

FY19

FY20

FY21E FY22E

FY15

FY16

FY17

Exhibit 11: …with logistics contributing 60% to Gas business

Gas Division - EBITDA Breakup (%)

Sourcing

Retailing & Distribution

Logistics

FY18

FY19

FY20

FY16

FY21E FY22E

Source: Company, MOFSL

Exhibit 12: EBIDTA CAGR of 23% over FY19–22…

EBITDA (INRb)

Exhibit 13: …followed by a similar PAT CAGR

PAT (INRb)

1.4

FY15

1.9

FY16

2.1

FY17

2.7

FY18

3.7

FY19

2.8

5.9

6.9

1.0

FY15

1.1

FY16

1.2

FY17

2.0

FY18

2.2

FY19

1.0

3.5

4.2

FY20 FY21E FY22E

Source: Company, MOFSL

FY20 FY21E FY22E

Source: Company, MOFSL

Exhibit 14: Return ratios to hover at +20%

RoE (%)

FY15

FY16

FY17

FY18

FY19

FY20

FY21E FY22E

RoCE (%)

Exhibit 15: Strong FCF yield (~15%)

FCF (INRb)

4.3

4.1

5.3

0.5

(0.9)

FY16

FY17

(1.0)

FY18

FY19

(2.7)

FY20

FY21E

FY22E

Source: Company, MOFSL

23 July 2020

Aegis Logistics

Financials and valuations

Consolidated - Income Statement

Y/E March

Total Income from Operations

Change (%)

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 (%)

FY15

39,160

-22.2

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

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

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

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

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

2,765

3.8

687

2,078

331

328

2,076

736

35.5

344

996

-55.0

1.4

FY21E

81,709

13.7

5,901

7.2

781

5,120

379

374

5,114

1,289

25.2

344

3,482

249.6

4.3

(INR Million)

FY22E

96,230

17.8

6,861

7.1

845

6,017

427

440

6,030

1,519

25.2

344

4,166

19.7

4.3

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

Curr. Assets, Loans&Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability & Prov.

Account Payables

Other Current Liabilities

Net Current Assets

Appl. of Funds

E: MOFSL Estimates

FY15

334

3,940

4,274

264

2,181

189

6,908

6,540

2,139

4,401

137

339

4,276

204

2,012

1,054

1,007

2,459

1,979

379

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

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

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

2,218

16,299

FY19

334

13,579

13,913

748

1,865

834

17,361

16,728

3,463

13,265

1,207

9,688

338

2,285

4,129

2,936

6,926

4,853

1,927

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

655

19,917

FY21E

340

18,912

19,252

906

2,446

309

22,913

21,116

4,931

16,185

2,884

14,157

462

5,165

5,857

2,673

10,408

4,407

5,796

3,750

22,913

(INR Million)

FY22E

340

22,150

22,490

906

2,736

309

26,441

21,116

5,775

15,340

3,271

19,998

545

6,082

10,223

3,148

12,262

5,196

6,826

7,736

26,441

23 July 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

FY15

2.4

3.1

12.8

0.8

24.5

80.9

62.7

15.0

1.7

45.4

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

56.4

46.8

12.7

2.9

35.0

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

53.2

44.2

7.6

1.7

31.8

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

32.3

27.6

5.3

1.4

24.5

0.8

-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

28.9

23.5

4.6

1.1

16.6

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

64.2

38.0

3.9

0.9

23.0

0.9

-8.2

6.5

9.0

10.0

3.4

3.6

1.1

6.3

0.0

FY21E

10.4

12.8

57.6

2.0

22.3

18.4

15.0

3.3

0.7

10.3

1.1

12.1

19.5

20.3

26.3

3.9

3.6

1.4

13.5

-0.2

FY22E

12.5

15.0

67.3

2.4

22.3

15.4

12.8

2.8

0.6

8.2

1.3

16.0

20.0

20.6

33.4

4.6

3.6

1.6

14.1

-0.3

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

(Pur)/Sale of Investments

CF from Investments

Inc/(Dec) in Debt

Interest Paid

Dividend Paid

CF from Fin. Activity

Inc/Dec of Cash

Opening Balance

Closing Balance

E: MOFSL Estimates

FY15

1,422

230

123

-110

-118

1,547

1,223

-474

750

260

-128

-229

-199

-339

-767

329

725

1,054

FY16

1,527

234

122

-405

-76

1,402

1,384

-916

468

215

-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

-104

-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

5,114

781

-1,289

129

4,741

-683

4,058

-310

290

-379

-776

-1,208

3,223

2,634

5,857

(INR

Million)

FY22E

6,030

845

-13

-1,519

379

5,721

-387

5,334

290

-427

-928

-1,409

4,365

5,857

10,223

23 July 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

products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are

available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOFSL) 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

available on the website at

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

buy or sell the securities or derivatives thereof of companies mentioned herein. (b) 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) or may have

any 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

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

should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific

merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the

website at

https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx

A graph of daily closing prices of securities is available at

www.nseindia.com, www.bseindia.com.

Research Analyst views on Subject Company may vary based on Fundamental

research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated

from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.

Regional Disclosures (outside India)

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability

or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.

For Hong Kong:

This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong

Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst

Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of

research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity

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

securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not

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

Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any

brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is

intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as

"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which

this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration

provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange

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-

dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this

chaperoning agreement.

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.

registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public

appearances and trading securities held by a research analyst account.

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

services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and

Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL

in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,

of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the

SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and

inform MOCMSPL.

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 July 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

of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in

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,

representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The

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

informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing

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

objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this

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

entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,

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

revenue or lost profits that may arise from or in connection with the use of the information.

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

affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such

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.

* MOFSL 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 July 2020