Aegis Logistics (AGIS) Stock Soars 9% to Record High Post Q4 Results, Climbs 23% in Just 2 Sessions

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  <li>Shares of Aegis Logistics surged 9 percent in intra-day deals on Monday to hit a new high of ₹775.20 apiece after the company posted strong results for the quarter ended March 2024 (Q4FY24).</li>
  <li>This is the second straight session when the stock has hit a record high, jumping 23 percent in these two sessions.</li>
  <li>On Friday, the stock rallied 18.5 percent in intra-day deals to its new high of ₹630.1 and ended the previous session 12.7 percent higher at ₹710.25.</li>
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<p><strong>Aegis Logistics stock surges 9% to new high after Q4 results, up 23% in 2 sessions.</strong></p>

<h2><strong>Strong Quarterly Performance Drives Stock Surge</strong></h2>
<p>In the March quarter, Aegis Logistics reported a 39.35 percent year-over-year (YoY) increase in profit after tax, amounting to ₹196.29 crore compared to ₹140.86 crore in the same quarter last year. Despite a 17.27 percent YoY decline in revenue from operations to ₹1,837.17 crore, the company's robust earnings before interest, tax, depreciation, and amortisation (EBITDA) of ₹310 crore, up 51 percent YoY, significantly contributed to the stock's performance.</p>

<h3><strong>Dividend Announcement and Capex Plans</strong></h3>
<p>The company recommended a final dividend of 200 percent, i.e., ₹2 per share of the face value of Re1 each for the financial year ended March 31, 2024, pending approval at the Annual General Meeting. Additionally, Aegis Logistics announced an ambitious capital expenditure (capex) plan, including the commissioning of 25,000 kilolitres (KL) at Kandla in FY25, full commissioning of 110,000 KL capacity at JNPT by FY25, and additional capacities at Kochi and other locations.</p>

<h3><strong>Full-Year Financial Performance and Analyst Outlook</strong></h3>
<p>For the full financial year 2023-24 (FY24), Aegis Logistics' net profit rose 22.95 percent to ₹569.21 crore from ₹462.96 crore in the previous year. However, sales declined 18.33 percent to ₹7,045.92 crore from ₹8,627.21 crore in FY23. Post-earnings, brokerage house Motilal Oswal retained its ‘buy’ call on the stock with a target price of ₹670, implying a 13 percent downside, citing robust growth outlook but high valuations.</p>

<h3><strong>Conclusion</strong></h3>
<p>Aegis Logistics has demonstrated strong financial performance and strategic growth plans, driving its stock to new highs. While the stock has shown significant gains, investors should consider the high valuations and future growth prospects before making investment decisions.</p>