Aegis Logistics Reports Mixed Performance in Q2 FY25, Investors Advised to Hold Stock

Aegis Logistics, a largecap logistics company, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Aegis Logistics has seen a flat performance in the quarter, with a score of -3 compared to 2 in the previous quarter. However, there are some positive aspects to the company’s performance. The operating cash flow has been consistently growing each year for the past three years, with the highest amount of Rs 655.53 crore generated annually. This indicates that the company has been able to generate higher cash revenues from its business operations.

On the other hand, there are some areas that need improvement. The profit before tax (PBT) less other income for the quarter has fallen by -10.9% compared to the average PBT of the previous four quarters. This trend is concerning in the near term. Similarly, the profit after tax (PAT) for the quarter has also fallen by -13.9% compared to the average PAT of the previous four quarters. This indicates a declining profitability for the company and lower earnings for shareholders.

Another area of concern is the earnings per share (EPS) for the quarter, which is the lowest in the last five quarters at Rs 3.59. This shows a declining profitability trend for the company. Additionally, the dividend payout ratio (DPR) for the past five years is the lowest at 20.04%. This means that the company is distributing a lower proportion of its profits as dividends to shareholders.

Overall, Aegis Logistics has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects, there are also areas that need improvement. Investors are advised to hold their stock and keep an eye on the company’s future financial results.