Foreign brokerage and Research firm UBS sees a 42% rally in Aegis Logistics’ shares and sets the target price at Rs 480 per share with a ‘buy’ rating.

The Aegis stock opened 1% plus higher on Monday at Rs 338.10 but was unsuccessful in sustaining early gains. At 10:14 am, the stock traded flat at Rs 333.50 with volumes of 17,403 shares. Its five-day average was 94,242 shares, marking a decrease of 81.55% in volume.

UBS believes that Aegis Logistics shares’ medium to long-term outlook remains intact.

UBS has detected that the current capacity growth has led to a sturdy pick-up in LPG terminalling volume. This positive trend is expected to endure in the near term, along with development in utilisation. Additionally, UBS records that Aegis Logistics has commenced noteworthy capacity expansion in both its LPG and liquids businesses, signifying a substantial investment in managing larger volumes of these products.

The company’s combined revenue from operations resulted at Rs 2,154.47 crore during the March ending quarter, besides Rs 2,103.58 crore reported a year ago. Its quarterly net profit surged 49% YoY to Rs 140.86 crore, and EBITDA jumped 70% to Rs 266.20 crore.