AEGISLOG - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.7
| Stock Code | AEGISLOG | Market Cap | 24,593 Cr. | Current Price | 700 ₹ | High / Low | 946 ₹ |
| Stock P/E | 38.1 | Book Value | 78.4 ₹ | Dividend Yield | 1.04 % | ROCE | 23.9 % |
| ROE | 20.4 % | Face Value | 1.00 ₹ | DMA 50 | 722 ₹ | DMA 200 | 748 ₹ |
| Chg in FII Hold | 0.99 % | Chg in DII Hold | -0.84 % | PAT Qtr | 183 Cr. | PAT Prev Qtr | 167 Cr. |
| RSI | 47.2 | MACD | -8.24 | Volume | 5,07,390 | Avg Vol 1Wk | 14,03,993 |
| Low price | 639 ₹ | High price | 946 ₹ | PEG Ratio | 8.20 | Debt to equity | 0.15 |
| 52w Index | 19.8 % | Qtr Profit Var | 179 % | EPS | 18.4 ₹ | Industry PE | 32.0 |
📊 Analysis: AEGISLOG demonstrates strong operational efficiency with ROE at 20.4% and ROCE at 23.9%, supported by low debt-to-equity (0.15). Earnings momentum is visible with PAT growth (183 Cr vs 167 Cr). However, the stock trades at a P/E of 38.1, above the industry average of 32.0, and the PEG ratio of 8.20 highlights overvaluation relative to growth. Technical indicators show weakness: price below DMA 50 and DMA 200, MACD negative, and RSI neutral at 47.2. Dividend yield of 1.04% is modest, making it less attractive for income-focused investors.
💡 Entry Price Zone: Accumulation is favorable between ₹640 – ₹680, closer to the 52-week low, offering better valuation comfort and alignment with technical support.
⏳ Exit / Holding Strategy: Long-term investors (3–5 years) can hold given strong ROE/ROCE and consistent earnings growth. Exit or partial profit booking should be considered near ₹900–₹950 resistance levels or if P/E exceeds 40 without corresponding earnings growth.
Positive ✅
- Strong ROE (20.4%) and ROCE (23.9%) indicate efficient capital use.
- Low debt-to-equity ratio (0.15) ensures financial stability.
- Quarterly PAT growth shows earnings momentum.
- FII holdings increased by 0.99%, reflecting institutional confidence.
Limitation ⚠️
- High P/E (38.1) compared to industry average (32.0).
- PEG ratio of 8.20 signals overvaluation relative to growth.
- Dividend yield of 1.04% is modest.
- Trading volume lower than weekly average, indicating reduced liquidity.
Company Negative News 📉
- No major negative news reported, but valuation concerns persist.
Company Positive News 📈
- Quarterly profit variation of 179% highlights strong earnings growth.
- EPS of ₹18.4 supports long-term profitability.
Industry 🌐
- Industry P/E at 32.0 indicates moderate sector valuation.
- Logistics sector benefits from infrastructure expansion and supply chain demand.
Conclusion 📝
AEGISLOG is fundamentally strong with high ROE/ROCE and consistent profit growth. However, current valuations are stretched, making it suitable for long-term investors only if accumulated near ₹640–₹680. Existing holders should maintain a 3–5 year horizon, with partial profit booking near ₹900–₹950 resistance levels.