Shares of Aegis Logisitics were volatile on Wednesday, August 19, after closing the previous session over 6% higher after reports of its acquisition plans. Brokerage firm JPMorgan has an "overweight" rating on the stock with a target price of ₹1,670 per share, an upside of 22% from its previous close.
The brokerage said the Aegis Logistics stock reacted on Tuesday after a news report by Economic Times , citing sources, that the company was in advanced discussions to acquire UAE-based Tristar Group for $1.5 billion. Tristar is a globally fully-integrated energy logistics firm operating across more than 30 countries with marquee customers such as BP, ADNOC, ExxonMobil, Total and Shell.

While there is no official press release from the company yet, its management has been guiding to a 2030 growth roadmap encompassing both, organic and inorganic stores, JPMorgan said. Prima facie, a potential acquisition would make Aegis a key global energy logistics player and likely to receive substantial volume, cost synergies as Tristar owns and operates fuel storage facilities in Aegis' key sourcing geographies -- West Asia, Africa, North America, Central America, the brokerage added.
It said Tristar generated $257 million of EBITDA/$1.4 billion revenue in the 2025 calendar year. While details are limited at this point, a potential transaction multiple of 5.8x enterprise/EBITDA looks attractive, it said. Aegis' FY27 and FY28 estimated EV/EBITDA is 21.7x and 19.6x on consensus.

JPMorgan said it does not think the financing deal should be viewed negatively by investors and the recent investor feedback has been positive as the Centre is planning a 30-day LPG storage buffer after the West Asia conflict. Aegis delivered a healthy operating cash flow of ₹2,000 crore in FY26 and has a net cash balance sheet.
The brokerage believes this positions Aegis Logistics well for the next leg of capacity creation. The company is targeting 0.6x gearing ratio and 3.5x EBITDA. Hence, it thinks Aegis Logistics can comfortably fund a potential acquisition of this size likely via a mix of debt and internal accruals.

Of the six analysts who have coverage on Aegis Logistics, four have a "buy" rating while one each have "hold" and "sell" ratings. Shares of Aegis Logistics were trading with gains in the first couple hours of trade on Wednesday but later pared their gains and were down 0.3% at ₹1,363.1 apiece at 11.10 am.
It has gained 90.9% in this year, so far.