Best Logistics Stocks in India

22 March 2024
8 min read
Best Logistics Stocks in India
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

The logistics sector of India plays a crucial role in enhancing international commerce, contributing significantly to economic growth. It facilitates swift, cost-effective, and efficient transportation of goods across the nation, serving as the backbone of the Indian economy. Given its pivotal role and dependence on other commercial sectors, the industry is evolving rapidly.

Logistics Industry in India - A Brief Overview

The logistics industry involves various supply chain activities, including transportation, customer service, inventory management, information flow, and order processing. Additionally, it involves warehousing, material handling, purchasing, packaging, information dissemination, and maintenance, among others. 

Technological advancements and innovation have led to substantial growth and notable transformations in the Indian logistics industry over the past decade. These changes have resulted in more effective and customer-focused operations, making stocks of these companies attractive investment opportunities for investors.

In 2023, India moved up six places to reach the 38th position out of 139 countries as per the World Bank's Logistics Performance Index. This shows how efficiently the logistics sector has improved in India. Moreover, a report unveiled at the LogiMAT India predicts that India's logistics sector will witness an annual growth rate of 8.8%, reaching USD 484.43 billion in the year 2029, from USD 317.26 billion in 2024, with the evolving technology.

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Best Logistics Stocks in India 2024 As Per Analyst Ratings

The following table highlights the best logistics shares in India as per analyst ratings. We have made the list based on the stock ratings provided by the analysts who conduct a comprehensive study of the market before rating a stock:

S.No.

Best Logistics Sector Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

TCI Express

100

2.

VRL Logistics

87.5

3.

Interglobe Aviation

85.71

4.

Gateway Distriparks

84.62

5.

Blue Dart Express

71.43

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Logistics Stocks in India in 2024 As Per Market Capitalisation

Here is a compiled list of the best logistics company shares in India based on their market capitalisation:

S.No.

Top Logistics Shares in India (as per Market Capitalisation)

1.

Interglobe Aviation

2.

Container Corporation of India

3.

Delhivery

4.

Blue Dart Express

5.

TVS Supply Chain Solutions

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Logistics Stocks in India As Per Analyst Ratings

Here is a quick summary of top logistic stocks in India based on analyst ratings:

1) TCI Express

Founded in 1985, TCI Express Ltd is a prominent logistics company in India. It offers a wide array of logistics solutions to its clients, encompassing freight forwarding, express cargo, warehousing, supply chain management, and other related services in more than 60,000 locations.

The company operates across various segments, including express cargo, surface transportation, air cargo, and international freight forwarding. It provides additional services like door-to-door delivery, warehousing, and customs clearance. The company is renowned for its well-known brands like TCI XPS, TCI Freight, TCI Air Cargo, and TCI International. 

2) VRL Logistics

VRL Logistics, established in 1976, has evolved into a nationally recognised logistics and transport company and holds the title of the largest fleet owner of commercial vehicles in India.

This company is a pioneer in providing safe and reliable logistics services, particularly in parcel delivery, ensuring even remote areas receive their deliveries promptly. Its services span across 24 states and 5 Union Territories, catering to a diverse clientele of corporates, SMEs, and traders with a focus on B2B services. It boasts state-of-the-art vehicle maintenance facilities equipped with technological innovations to enhance performance.

Logistics Stocks Fun Fact - Groww

3) Interglobe Aviation

Interglobe Aviation Limited (IGAVIA) operates as a subsidiary of its parent company, Interglobe Enterprises Limited, which owns Indigo Airlines. The airline currently serves over 86 domestic and 32 international destinations.

With 358 aircraft, this low-cost airline claims to be the largest fleet in India and holds around 62% market share of the aviation industry. Furthermore, this airline offers its passengers on-time flights, flights with low fares, and hassle-free services.

4) Gateway Distriparks

Headquartered in Mumbai and established in 1996, Gateway Distriparks Limited offers a comprehensive range of logistics services. With its 10 Inland Container Depots and Container Freight Stations strategically positioned across India, the company operates a fleet of 31 trainsets and more than 500 trailers.

It provides specialised solutions like temperature-controlled storage, third-party logistics, and reverse logistics for various industries like pharmaceuticals and consumer goods. The company ensures efficient cargo transportation and value-added services like labelling and repacking.

5) Blue Dart Express

Launched in 1991 and renowned as South Asia's top express air, integrated transportation, and distribution company, Blue Dart Express Limited provides a wide range of delivery services like cash-on-deliveries, swift deliveries and slot-based deliveries.

It is one of the biggest logistics companies that covers over 55,400 locations across India. Blue Dart Express operates across various industries, including e-commerce, banking, and healthcare. It has expanded its operations beyond India's borders, reaching international markets. 

Factors to Consider Before Investing in Logistics Stocks in India

When buying the best logistics shares in India, it is crucial to consider several factors before making investment decisions. Here are some key considerations:

  • Infrastructure

Before prioritising investment in a logistics stock, it is crucial to consider the infrastructure of its company. The sector includes different warehouses, distribution centres, transport modes, ports, terminals, etc. An efficiently managed logistics infrastructure leads to better efficiency and productivity in businesses and industries.

  • Technological Integration

With advancements in technology like automation, GPS technology, and logistics apps, operations become more efficient and cost-effective. These improvements enhance the performance of logistics companies, thus leading to potential growth in their stock value. 

  • Supply Chain Resilience

If a logistics company can handle unexpected problems well, like disasters or trade issues, it builds trust among investors. A resilient supply chain means fewer risks and costs for the company. This trust can make the company's stock price go up.

  • Financial Performance

Analyse the financial health and performance metrics of logistics companies, including revenue growth, profitability, margins and cash flow. You must look for companies with strong financials, sustainable growth and efficient cost management.

  • Competitive Position

Evaluate the competitive positioning of logistics companies, including market share, service offerings, customer relationships, and geographic reach. Companies with high competitive advantages and differentiation strategies are better positioned for long-term success.

  • Management Team

The effectiveness of a company's management team holds significant importance in the investment decision-making process. You should thoroughly assess the management's track record to ensure a history of successful leadership. Look how effectively they have solved problems to drive the company towards growth and success.

  • Impact of Crude Oil Prices

Fluctuations in crude oil prices can significantly affect logistics companies. Look for firms that can adapt to these changes and manage costs effectively.

Should You Invest in Logistics Stocks?

Logistics companies play a crucial role in transporting goods efficiently and supporting various industries. These stocks might seem appealing due to their importance in the economy. However, their performance could be influenced by factors like changes in regulations, technological advancements, global economic conditions, and specific risks inherent to the logistics industry.

Investing in logistics stocks comes with its share of risks. The industry may face setbacks such as disruptions in supply chains due to natural disasters, geopolitical tensions, or economic downturns. Additionally, increased competition, rising fuel costs, and labour shortages can also impact the profitability of logistics companies.

Before investing in logistics stocks, it is vital to do your research thoroughly. You must keep an eye on market trends and any developments in the logistics sector. Moreover, regularly review your investment choices to ensure they match your financial goals and risk tolerance. 

The Bottom Line 

The logistics industry plays a crucial role in the growth of an economy, presenting investors with promising opportunities as it continues to expand.

If you are seeking to buy the best logistics shares in India, you should analyse individual companies' financial performance, growth prospects and various other factors mentioned above before investing in the stock. 

*Stock Selection Criteria for Top Stocks Based on Analyst Rating

Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings-

These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).  

Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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