Aegis Vopak Terminals IPO Guidance by Paresh Gordhandas, CA & Research Analyst.
Business Summary
Aegis Vopak Terminals is India’s largest third-party owner and operator of tank storage terminals for LPG and liquid products, with a total capacity of 1.50 million cubic meters for liquids and 70,800 MT for LPG (as of Dec 31, 2024). The company contributes approximately 11.5% of India’s LPG static capacity and 25.5% of third-party liquid storage capacity.
Terminals are strategically located across five key ports on India’s West and East coasts, handling 23% of national liquid imports and 61% of LPG imports. Facilities include pipelines, firefighting systems, and evacuation infrastructure by ship, rail, road, and pipeline.
The company operates as a JV between Aegis Logistics Ltd. (India’s largest third-party LPG handler) and Vopak India BV, a subsidiary of Royal Vopak, a global tank storage leader.
Expansion Plans
- LPG Storage Expansion: Additional 130,000 MT LPG capacity expected by FY26 (New Mangalore & Pipavav), bringing total to 200,800 MT.
- Liquid Storage Expansion: Added 101,900 cubic meters at JNPA, Navi Mumbai.
Market Outlook
- LPG: Strong domestic & industrial demand; imports expected to meet 60%+ of demand, CAGR of 6–8% till FY29.
- Chemicals: Sector expected to benefit from manufacturing push, raising GDP contribution to 20% by 2030.
- Ammonia & Hydrogen: Demand for ammonia import terminals and green energy (ammonia, hydrogen) storage poised to rise under national hydrogen policy.
Strengths
- Market leader in third-party storage (LPG & liquid).
- Strategically located terminals at high-import volume ports.
- Proven execution and expansion track record.
- Backed by reputed promoters with global and domestic expertise.
Financials & Valuation
- FY24 Net Profit: Rs.86.54 Cr; 9M FY25 Profit: Rs.85.89 Cr.
- IPO proceeds to retire Rs.2015 Cr in debt; expected to save ~Rs.150 Cr annually post-tax.
- Projected FY26 EPS: Rs.2.40–2.60 on expanded equity.
- IPO Valuation: P/E of 90–98x – appears expensive but justified by strong growth and sector positioning. Investment View:
While near-term valuation may seem high, Aegis Vopak Terminals offers strong long-term potential backed by market leadership, expansion plans, and tailwinds from rising LPG, chemical, and green energy demand. Suitable for long-term investors.
Aegis Vopak Terminals IPO Guidance
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