Aegis Vopak: Hormuz Reopen Boost

$AEGISVOPAK Aegis Vopak can benefit from the Strait of Hormuz reopening because the company sits in the middle of India’s LPG and liquid storage chain. Its terminals do not depend on crude price moves alone; they earn from storage, handling, and throughput, which can rise when import flows and trade activity normalize. As the article points out, this makes it a high-margin oil support business rather than a direct oil producer. The company is India’s largest third-party tank storage operator for LPG and liquid products, with about 1.7 million cubic meters of liquid storage and 70,800 MT of LPG capacity. It operates across six ports and handles about 23% of India’s liquid import volumes and 61% of LPG import volumes through those locations. Financially, the business has shown strong growth: revenue rose from Rs 3,533 million in FY23 to Rs 5,618 million in FY24, while EBITDA increased from Rs 2,293 million to Rs 3,975 million, lifting EBITDA margin to 70.8%. In 9M FY25, revenue was Rs 4,642 million, EBITDA was Rs 3,414 million, and adjusted PAT was Rs 859 million. For shareholders, the reopening of Hormuz is generally positive because it reduces supply-chain disruption, supports import volumes, and can improve terminal utilization. Aegis Vopak also has expansion plans at New Mangalore and Pipavav, which could add capacity and deepen earnings over time. But the stock is not risk-free: the business is capital intensive, debt is meaningful, and the IPO note valued it at an expensive 56.5x EV/EBITDA versus a peer average of 20.5x. That means the upside from better operations may already be partly priced in. For long-term holders, this is a structurally useful infrastructure play, but near-term returns depend on execution, volume growth, and whether high valuation cools down. The reopening is more beneficial than harmful, yet shareholders should expect the real gain to come from steady capacity use, not a sudden windfall.