AEGISVOPAK - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 2.6
| Stock Code | AEGISVOPAK | Market Cap | 25,398 Cr. | Current Price | 229 ₹ | High / Low | 302 ₹ |
| Stock P/E | 143 | Book Value | 42.2 ₹ | Dividend Yield | 0.00 % | ROCE | 6.53 % |
| ROE | 7.70 % | Face Value | 10.0 ₹ | DMA 50 | 237 ₹ | DMA 200 | 248 ₹ |
| Chg in FII Hold | -0.04 % | Chg in DII Hold | -0.05 % | PAT Qtr | 51.1 Cr. | PAT Prev Qtr | 49.0 Cr. |
| RSI | 50.1 | MACD | -4.25 | Volume | 7,47,133 | Avg Vol 1Wk | 27,55,934 |
| Low price | 198 ₹ | High price | 302 ₹ | PEG Ratio | 0.39 | Debt to equity | 0.40 |
| 52w Index | 29.8 % | Qtr Profit Var | 50.3 % | EPS | 1.65 ₹ | Industry PE | 65.3 |
📊 Analysis: AEGISVOPAK shows weak fundamentals for long-term investment. ROE at 7.7% and ROCE at 6.53% are below desirable levels, indicating inefficient capital usage. The P/E ratio of 143 is extremely high compared to the industry average of 65.3, suggesting significant overvaluation. EPS of ₹1.65 is low relative to price, and dividend yield is 0%, making it unattractive for income investors. Debt-to-equity at 0.40 is moderate but adds financial risk. Technicals show neutral RSI (50.1) and negative MACD, pointing to sideways or weak momentum. Despite quarterly PAT growth of 50.3%, overall profitability remains modest.
💡 Entry Price Zone: Ideal accumulation range is between ₹200 – ₹215, closer to the 52-week low, offering better valuation comfort. Current price of ₹229 is still expensive relative to fundamentals.
⏳ Exit / Holding Strategy: If already holding, consider a short-to-medium horizon (1–2 years) and exit near ₹280–₹300 resistance levels. Long-term holding is not recommended unless ROE/ROCE improve significantly. Investors should monitor earnings growth and valuation compression before extending holding period.
Positive ✅
- Quarterly PAT growth of 50.3% shows short-term earnings improvement.
- PEG ratio of 0.39 suggests potential undervaluation if growth sustains.
- Moderate debt-to-equity (0.40) indicates manageable leverage.
Limitation ⚠️
- Extremely high P/E (143) compared to industry average (65.3).
- Weak ROE (7.7%) and ROCE (6.53%) reflect poor capital efficiency.
- No dividend yield, unattractive for income-focused investors.
- EPS of ₹1.65 is low relative to price.
- Decline in both FII (-0.04%) and DII (-0.05%) holdings shows reduced institutional confidence.
Company Negative News 📉
- No major negative news reported, but weak fundamentals and high valuation remain concerns.
Company Positive News 📈
- Quarterly profit growth indicates operational improvement.
- 52-week index return of 29.8% shows strong past performance momentum.
Industry 🌐
- Industry P/E at 65.3 is already high, reflecting sector-wide premium valuations.
- Logistics and storage sector benefits from infrastructure expansion and rising demand.
Conclusion 📝
AEGISVOPAK is currently overvalued with weak ROE/ROCE and no dividend support. While short-term earnings growth is visible, long-term fundamentals do not justify high valuations. Investors should only consider entry near ₹200–₹215 for risk-adjusted returns. Existing holders may exit near ₹280–₹300 resistance levels, as long-term holding is not favorable unless profitability metrics improve.