Aegis Logistics is a leading company in the oil, gas and chemical logistics business. Its stock got re-rated after Aegis acquired Shell Gas (LPG) India in December 2009, which gave the company presence in India 's cylinder market (and access to facilities in Pipavav Port in Gujarat). Further, the joint venture with Essar Oil to set up gas stations at its retail outlets has opened up opportunities. Aegis aims to increase its capacities, improve utilisation, expand network, enter commercial gas supply and roll out gas retail outlets, which should help it grow faster. Its plans to growth at 30-35 per cent over the next two years should reward investors in the long run. However, most of these positives are reflecting in the valuation (PE), which at 15 times the estimated FY11 earnings is not cheap.
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