The e-commerce boom, growing disposable incomes, and the government's emphasis on infrastructure development have all contributed to the fast growth of the logistics sector in India in recent years.
Logistics stocks might be a smart alternative for investors seeking businesses with growth potential. India's logistics sector has expanded quickly in recent years, and this growth is anticipated to continue.
In addition to helping investors diversify their portfolios, logistic stocks may expose investors to this growth potential.
When investing in logistic stocks in India, you must do your homework on the company's financial performance, competitive landscape, and growth prospects.
This blog will cover the best logistic stocks in India with the potential to offer investors high returns.
Best Logistics Stocks in India 2023
With a better understanding of this market, let's look at the trending logistic shares list in India that investors might wish to look into-
Factors to Consider Before Investing in Logistics Sector Stocks in India
Investors should consider several aspects before investing in logistics stocks to make informed judgments.
The following are some essential things to think about-
The state of the economy may significantly impact the logistics sector; therefore, when purchasing logistics stocks, stores should consider the economy's status, inflation, and interest rates.
There are several competitors in the fiercely competitive logistics sector. Therefore, investors should assess the company's rivals, including their market position, pricing policies, and possibilities for expansion.
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Interesting Fact to Know
As per the Ministry of Commerce and Industry's statement, the Indian logistics sector accounts for approximately 5% of the country's GDP !
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Governmental policies and regulations may significantly impact the logistics sector. Therefore, investors should assess how government policies like taxes, tariffs, and restrictions affect the firm's financial performance.
Technologies like automation, digitalization, and artificial intelligence are causing several upheavals in logistics. Investors should assess how these disruptions will affect business operations and the potential for future growth.
Risks faced by the logistics industry include interruptions to the supply chain, accidents, and natural catastrophes.
To ensure the firm can adequately manage these risks, investors should assess the company's risk management policies and processes.
Top Logistics Companies in India Listed in Stock Market: An Overview
Here are some of the listed logistics stocks in NSE that have performed well in the past-
1) Adani Ports
- One of India's top logistics firms, Adani Ports and Special Economic Zone Ltd (APSEZ), focuses on constructing, administering, and using the port infrastructure.
- The firm is a division of the Adani Group, one of India's biggest conglomerates of businesses. Currently, this is the top logistics company in India.
- The largest commercial port in India, Mundra Port, is one of the 12 ports and terminals run by APSEZ. The business engages in various operations, such as port services, bulk cargo and container handling. In addition to running inland container terminals and logistics parks, APSEZ offers customers complete logistics solutions.
- APSEZ has a proven track record of profitability and expansion. The business routinely produces solid financial results and holds a commanding market dominance in the port infrastructure industry.
2) Container Corporation of India
- The Indian public sector logistics firm Container Corporation of India Ltd (CONCOR) focuses on providing logistics and transportation services for containerized freight.
- The company's headquarters are in New Delhi, established in 1988. It is India's largest logistic company.
- In India, CONCOR has a depots and container ports network that provides customers with complete logistical solutions. The business's operations span a variety of tasks, such as container handling, warehousing, shipping, and customs clearance.
- CONCOR holds a dominant market share in the container logistics industry and has been growing its business. Also, the company has been looking at potential foreign expansion options.
3) Delhivery
- The privately held logistics firm called Delhivery Ltd was established in 2011.
- The firm offers complete logistical solutions to retailers, e-commerce enterprises, and other organizations in India. As a result, it is often recognized as one of the best logistics companies in India.
- Delhivery has a network of distribution facilities, warehouses, and fulfilment centres throughout India and offers various services, including last-mile delivery, transportation, and warehousing.
- The business uses technology to offer effective logistics solutions, including a custom transportation management system, algorithms for route optimization, and real-time tracking.
- Delhivery, which has been expanding quickly in recent years, holds a dominant market share in India's e-commerce logistics industry. The business has been growing its operations to include additional Indian cities and towns, and it is also looking for ways to expand outside.
4) Blue Dart Express
- The Indian logistics business Blue Dart Express Ltd specializes in courier and rapid delivery services. It is often found in the list of the top 10 listed logistics companies in India.
- Blue Dart offers consumers door-to-door delivery services through a network of more than 14,000 sites throughout India, including more than 7,500 towns and cities.
- The organization offers services in various sectors, including banking, healthcare, and e-commerce.
- In addition to looking at the potential to develop globally, the firm has been expanding its operations to include new regions of India.
- With a significant emphasis on technology, Blue Dart has been aggressively investing in digital solutions to boost its operational effectiveness and provide clients with improved services.
- A smartphone app for monitoring shipments and a tool for genuine tracking and monitoring of delivery trucks are just two of the creative solutions the business has created.
5) Aegis Logistics
- A leading logistics firm in India, Aegis Logistics Ltd, is focused on processing, distributing, and storing chemicals and petroleum products.
- Aegis Logistics has a network of ports and pipelines throughout India and offers various services, including storing, distributing, and transporting chemicals and petroleum products.
- The business has grown recently and enjoys a dominant market position in India's liquefied petroleum gas (LPG) sector.
- With a strong emphasis on safety, Aegis Logistics has implemented several safeguards to guarantee the secure handling and storage of chemicals and petroleum products.
6) Allcargo Logistics
- Leading Indian integrated logistics provider Allcargo Logistics Ltd offers various logistics solutions to clients in different sectors.
- Allcargo offers various services, including freight forwarding, customs clearance, warehousing, transportation, and project logistics, through a network of over 300 locations spread throughout more than 160 nations.
- The firm holds a dominant market share in India's project logistics and international freight forwarding industries.
- Allcargo prioritizes technology and has significantly invested in digital solutions to boost its operational effectiveness and provide consumers with improved services.
- The business has created several cutting-edge technologies, including a real-time cargo tracking and monitoring tool and a digital freight forwarding platform.
7) Great Eastern Shipping Company
- One of India's largest private shipping firms, the Great Eastern Shipping Company, was established in 1948 by Shri. Jaidayal Dalmia.
- Crude oil tankers, product tankers, dry bulk carriers, liquefied petroleum gas (LPG) carriers, and offshore supply boats are all part of GESCO's fleet of ships.
- With operations in India, the Middle East, and Asia, the corporation has a global footprint with a fleet of owned and hired boats.
- The business is dedicated to sustainable development and has taken several steps to decrease its carbon impact.
8) Shipping Corporation of India
- Shipping Corporation of India Ltd (SCI) is a government-owned shipping business in India.
- It was founded in 1961, and since then, its main goal has been to offer both local and foreign customers trustworthy and affordable shipping services.
- Crude oil tankers, product tankers, container ships, bulk carriers, and passenger/cargo boats are part of SCI's fleet of 61 ships.
- With operations in Europe, America, and Asia, the business is present worldwide and provides various shipping services, such as ship management, chartering, and marine training.
- SCI manages a fleet of 61 ships, which includes bulk carriers, passenger-cargo ships, container ships, product tankers, and crude oil tankers. The business has global operations and provides various shipping services, such as ship management, chartering, and maritime training.
9) VRL Logistics
- VRL Logistics Ltd is a logistics and transport firm in India. Vijay Sankeshwar established the business in 1976 as a modest commodities delivery service.
- Today, VRL Logistics has a substantial logistics and transportation services network, including parcel, full truckload, and storage and distribution operations.
- With a dominant presence in India, VRL Logistics has approximately 5,000 vehicles, including trucks, trailers, and tankers. Via its subsidiaries, the corporation furthermore provides services for international freight forwarding.
10) TCI Express
- In 2008, TCI Express Ltd was created as a part of the Transport Corporation of India (TCI), and in 2016, it became an independent legal organization.
- Many courier and logistics services, including rapid delivery, goods forwarding, warehousing, and e-commerce logistics solutions, are offered by TCI Express.
- The business operates throughout India with a network of over 800 locations and franchisees and a fleet of more than 4,000 cars.
Conclusion
The Indian logistics industry is expanding quickly, and a number of businesses are ideally situated to benefit from this development.
From the stock market's standpoint, a few leading firms in the sector have excelled over time and have solid fundamentals and promising development prospects. Some of those top 10 logistics companies in India were featured in this blog.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst – Himanshu Sinha