Synopsis : JM Financial remains bullish on two key players in the energy and logistics sector, maintaining ‘Buy’ ratings on both. The brokerage sees one stock as a relatively stable performer with improving profitability, while the other offers higher growth potential despite near-term operational headwinds. Its target prices imply upside potential of up to 41 percent.
Amid global supply chain disruptions and volatility in energy transport routes, a leading brokerage remains bullish on two energy logistics players. One is seen as a stable performer supported by strong operations and favorable policies, while the other offers higher long-term growth potential despite near-term challenges. The brokerage believes both present attractive upside opportunities, catering to investors seeking either stability or growth.
Aegis Logistics: The resilient parent company
JM Financial has maintained its ‘Buy’ rating on Aegis Logistics and raised its target price to Rs. 1,200 from Rs. 935, implying an upside potential of23percent from the current market price.
The brokerage highlighted that distribution volumes grew 72% year-on-year during Q4 FY26, while profitability reached nearly ₹15,000 per tonne, significantly above historical averages.
The brokerage also increased its consolidated EBITDA estimates by 36% for FY27 and 15% for FY28, reflecting confidence in sustained earnings growth. Aegis Logistics reported revenue of ₹8,333 crore, EBITDA of ₹1,599 crore and PAT of ₹1,107 crore during FY26, supported by strong growth in its gas business.
JM Financial believes the company is benefiting from government policies that discourage industrial LPG usage by competing fuels, strengthening the competitive position of its LPG distribution segment.
Aegis Vopak Terminals: The high-growth opportunity
JM Financial has maintained its ‘Buy’ rating on Aegis Vopak Terminals with a target price of Rs. 330, implying an upside potential of 41 percent from the current market price.
The brokerage noted that LPG throughput volumes have been impacted by import disruptions caused by the congestion in the Strait of Hormuz, prompting it to lower EBITDA estimates by 6% for FY27 and 4% for FY28.
However, the brokerage remains constructive on the long-term outlook. It expects Aegis Vopak to gradually achieve a mature asset mix similar to its global parent, supported by ongoing infrastructure projects such as the Kandla-Gorakhpur LPG pipeline and capacity expansions.
The company continues to strengthen its infrastructure footprint. During FY26, Aegis Vopak reported revenue of ₹923 crore, EBITDA of ₹686 crore, and PAT of ₹342 crore while expanding LPG and liquid storage capacities across key ports.
JM Financial believes that much of the near-term weakness is already reflected in the stock price following a correction of around 18%, creating an attractive risk-reward opportunity for long-term investors.
JM Financial’s Preference
While both companies carry a ‘Buy’ rating, JM Financial views them differently from an investment perspective. Aegis Logistics is positioned as the more stable and earnings-visible play, benefiting from strong distribution economics and improving profitability. Aegis Vopak, on the other hand, is seen as a higher-growth infrastructure story with larger upside potential, though accompanied by short-term operational headwinds.
JM Financial remains positive on both Aegis Group companies. The brokerage sees Aegis Logistics as a dependable beneficiary of strong LPG distribution trends, while Aegis Vopak Terminals offers a higher-risk, higher-reward growth opportunity backed by expanding terminal infrastructure and long-term demand for energy logistics. Based on its target prices, the brokerage sees upside potential of 23% in Aegis Logistics and nearly 41% in Aegis Vopak Terminals.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
