Shares of Aegis Logistics surged nearly 3% on Monday, October 12, 2026, following a positive assessment from JM Financial regarding the company's potential acquisition of Dubai-based energy logistics firm, Tristar. The brokerage maintained its 'Buy' rating on Aegis Logistics, reiterating a target price of Rs 1,610.
Aegis Logistics is reportedly in discussions to acquire Tristar, though a definitive agreement has not yet been finalized. JM Financial noted that Aegis has neither confirmed nor denied these reports but proceeded to analyze a hypothetical all-cash acquisition scenario, highlighting significant growth opportunities.
Tristar Acquisition: Strategic Benefits and Valuation
The potential acquisition of Tristar, founded in 1998 and headquartered in Dubai, is seen as a strategic move that could substantially strengthen Aegis Logistics' liquid logistics business. Tristar provides comprehensive fuel logistics services, including maritime logistics, road transportation, warehousing, fuel tank storage, fuel distribution, and aviation fuelling.
JM Financial estimates Tristar's valuation at approximately $1.5 billion, which implies an enterprise value-to-EBITDA multiple of 5.8 times based on its projected CY25 earnings. For the calendar year 2025, Tristar reported estimated revenues of $1.4 billion and an EBITDA of $257 million, with profit after tax reaching $95 million (up from $82 million in CY24). Fuel distribution and storage tank farms contribute around 80% of Tristar's revenue.
Projected Earnings Growth and Synergies
Should the acquisition materialize, JM Financial projects a significant boost to Aegis Logistics' earnings. The brokerage estimates that Aegis' FY27 earnings per share (EPS) could rise to Rs 55, a notable increase from the Rs 42 EPS projected without the deal. This acquisition could also provide an effective way for Aegis Logistics to deploy its current cash balance, which presently yields modest returns.
The brokerage identified several potential synergies within Aegis Logistics' liquid logistics segment, particularly its distribution business. Tristar's extensive end-to-end fuel logistics capabilities are expected to complement Aegis' existing operations and facilitate expansion into additional liquid logistics services. Furthermore, the deal could open avenues for Aegis Logistics' subsidiary, AVTL, to expand its logistics operations within India and venture into special gases handled by Tristar.
JM Financial also referenced Aegis Logistics' successful track record of asset turnarounds, citing previous acquisitions such as an LPG facility at Pipavav from Shell and liquid tankage from Friends Group and Vopak at Kandla. The firm suggests Tristar could offer similar opportunities if acquired at an attractive valuation, potentially leading to further upside for Aegis Logistics stock, even without a valuation re-rating.