Jefferies downgrades Aegis Vopak to Hold after 35% rally

Global brokerage Jefferies has downgraded liquid and gas logistics operator Aegis Vopak to a 'Hold' rating from a 'Buy', even as it raised its price target to Rs 280 from Rs 240. The downgrade follows a 35% outperformance against the Nifty since June, leaving limited near-term upside, Jefferies said.

The company's first-quarter EBITDA beat consensus estimates by 14%, driven by a 31% year-on-year revenue jump in its liquids segment from strong volume at the Jawaharlal Nehru Port Authority terminal. In gas logistics, its joint venture handled 32% of India's total LPG imports in the quarter, maintaining high throughput despite a 45% national contraction in LPG import volumes.

Jefferies noted that Aegis Vopak's multi-year capacity expansion is on track, but the stock trades at 33x estimated EV/EBITDA for September 2027. The brokerage said current valuations provide limited margin of safety, prompting the neutral stance.