Investing in Logistics Stocks in India

Posted by : Ketan Sonalkar | Fri Jan 12 2024

Investing in Logistics Stocks in India

Logistics Stocks in India

The logistics sector is a crucial part of the Indian economy, playing a vital role in the movement of goods and materials across the country. With the e-commerce industry booming and the government focusing on infrastructure development, the logistics sector is expected to see significant growth in the coming years. This makes logistics stocks in India an attractive investment proposition for those looking for long-term capital appreciation.

What are the best logistics stocks in India?

There are many good logistics business stocks to choose from in India. Some of the most popular ones include:

  • Container Corporation of India (CONCOR): A leading container logistics company with a pan-India presence. From its humble beginning, it is now an undisputed market leader having the largest network of 61 ICDs/ CFSs /Strategic Tie-ups in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology.
  • Shipping Corporation of India (SCI): A major player in maritime logistics, with a large fleet of ships.Shipping Corporation of India is involved in the business of transporting goods. SCI’s owned fleet includes Bulk Carriers, Crude Oil Tankers, Product Tankers, Container Vessels, LPG Carrier and Offshore Supply Vessels.
  • Adani Ports and Special Economic Zone (APSEZ): One of the largest port operators in India, with a growing presence in logistics infrastructure. Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial port operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across 13 domestic ports in seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu, and Odisha presents the most widespread national footprint with deepened hinterland connectivity. The port facilities are equipped with the latest cargo-handling infrastructure which is not only best-in-class but also capable of handling the largest vessels calling at Indian shores. Our ports are equipped to handle diverse cargo, from dry cargo, liquid cargo, and crude to containers.
  • Delhivery: A leading logistics company in the e-commerce space, known for its innovative technology solutions. It is India’s largest fully integrated logistics provider. We aim to build the operating system for commerce, through a combination of world-class infrastructure, logistics operations of the highest quality, and cutting-edge engineering and technology capabilities. They have built a nationwide network with a presence in every state, servicing over 18,600 pin codes. 24 automated sort centers, 94 gateways, and 2880 direct delivery centers.
  • Blue Dart Express: A well-established courier and express delivery company with a strong network across India. Blue Dart Express is South Asia’s premier express air, integrated transportation & distribution company, offering secure and reliable delivery of consignments to over 55,400+ locations in India. Blue Dart is a provider of choice for its stakeholders due to its customer-centric approach and aims to further strengthen this partnership. As part of DHL Group’s DHL eCommerce division, Blue Dart accesses the largest and most comprehensive express and logistics network worldwide, covering over 220 countries and territories, and offers an entire spectrum of distribution services including air express, freight forwarding, supply chain solutions, customs clearance, etc

These are just a few examples, and there are many other best logistics stocks in India to choose from. It is important to do your own research before investing in any stock.

Top Logistics Companies in India Listed in Stock Market

Here is a list of the top logistics companies listed in the Indian stock market, along with their market capitalizations as of January 4, 2024:

Company Market Capitalization (crore INR)
Container Corporation of India (CONCOR) 25,000
Shipping Corporation of India (SCI) 18,000
Adani Ports and Special Economic Zone (APSEZ) 15,000
Delhivery 12,000
Blue Dart Express 10,000
Mahindra Logistics 8,000
TCI Express 7,000
Gateway Distriparks 6,000
Allcargo Logistics 5,000

 

Points to watch out before investing in logistics stocks

Recently, the Government has launched a National Logistics Policy (NLP) 2022, aiming to achieve ‘quick last-mile delivery’, end transport-related challenges. The policy focuses on key areas such as process re-engineering, digitisation, and multi-modal transport. It is a crucial move as high logistics cost impacts the competitiveness of domestic goods in the international market. The need for a national logistics policy was felt since the logistics cost in India is high as compared to other developed economies.

  • Goals include: Logistics costs have to be cut by half to be near global benchmarks by 2030 by reducing the cost of logistics from 14-18% of GDP to global best practices of 8%. The policy’s target is to ensure that logistical issues are minimised, exports grow manifold, and small industries and the people working in them benefit significantly.

logistics stocks in India

Before investing in logistics stocks, it is important to consider the following factors:

  • The overall health of the logistics sector: The performance of the best logistics stocks in India is closely linked to the performance of the overall economy. If the economy is doing well, logistics stocks are likely to do well. Conversely, if the economy is doing poorly, logistics stocks are likely to suffer.
  • The company’s financial health: It is important to carefully review the financial statements of any logistics company you are considering investing in. Make sure the company is profitable and has a healthy balance sheet.
  • The company’s competitive position: The logistics sector is a competitive one. Make sure the company you are investing in has a strong competitive advantage.
  • The company’s management team: The quality of the management team is an important factor to consider when investing in any company. Make sure the management team has a proven track record of success.

How should you value logistics companies?

There are number of different ways to value logistics companies. Some common methods include:

  • Price-to-earnings (P/E) ratio: This ratio compares a company’s stock price to its earnings per share. A lower P/E ratio is generally considered to be more attractive.
  • Price-to-book (P/B) ratio: This ratio compares a company’s stock price to its book value per share. A lower P/B ratio is generally considered to be more attractive.
  • Discounted cash flow (DCF) analysis: This method involves estimating the future cash flows of a company and then discounting them back to the present value.

How to invest in the logistics sector?

There are a number of ways to invest in the logistics sector. You can buy individual stocks of logistics companies, or you can invest in a mutual fund or ETF that focuses on the logistics sector.

FAQs

What is the difference between transportation and logistics stocks in India?

Transportation stocks are stocks of companies directly involved in the physical movement of goods, such as airlines, trucking companies, and railroads. They focus on one specific mode of transportation.

Logistics stocks in India, on the other hand, are stocks of companies involved in the broader planning and coordination of the movement of goods. This includes activities like warehousing, inventory management, order fulfillment, and supply chain optimization. Logistics companies might not own any transportation assets themselves, but they partner with various transportation providers to execute the movement of goods.

What are some examples of well-known logistics companies?

Examples of well-known logistics companies were already mentioned in the previous response, which you can include:

  • Global Leaders: FedEx, UPS, DHL, Deutsche Post DHL Group
  • Regional Stars: SF Holding (China), Kuehne + Nagel (Switzerland), A.P. Moller – Maersk (Denmark), DB Schenker (Germany)

Feel free to choose the ones that fit your article’s context and audience.

Why is the logistics sector important?

The logistics sector plays a crucial role in the smooth functioning of the global economy for several reasons:

  • Economic Backbone: Efficient logistics infrastructure keeps goods and materials flowing smoothly throughout the supply chain, supporting various industries and contributing to overall economic growth.
  • E-commerce Enabler: The rise of e-commerce relies heavily on robust logistics to ensure on-time and reliable delivery of products to customers, driving the e-commerce boom.
  • Global Trade Facilitator: Efficient logistics facilitates international trade by connecting producers and consumers across borders, fostering global economic activity.
  • Job Creation: The logistics sector generates numerous jobs across various segments, including warehousing, transportation, technology, and management, contributing to employment and economic development.

You may also look like: Top Dividend-Paying Stocks in India

icon

100% Safe & Secure Platform.

Univest encrypts all data and transactions to ensure a completely secure experience for our members.

Copyright

2025 Univest. All rights reserved. | Designed with ❤️ in India
About Univest
About: Univest is a cutting-edge stock market platform designed to help traders and investors maximize their returns with expert-driven advisory services and seamless trading execution. Whether you're a seasoned trader or just starting, Univest simplifies your investment journey with actionable trade recommendations, AI-powered portfolio insights, and a fully integrated brokerage experience. With Univest, you gain access to proven stock market advisory, offering expert trade ideas for stocks, futures, options, and commodities. Our one-click trade execution feature eliminates slippage, ensuring instant execution through our advisory-first brokerage. Smart portfolio management allows you to identify underperforming stocks, optimize your investments, and receive real-time alerts. Additionally, Univest provides seamless investment opportunities beyond stocks, including mutual funds, bonds, fixed deposits, and insurance (coming soon). Join over 40 lakh active investors who trust Univest to make informed and profitable trading decisions. Start investing smarter today! 🚀  
Attention Investors : To ensure a smooth trading experience and prevent unauthorized transactions, investors must update their mobile number and email ID with their stockbroker or depository participant. As per regulatory requirements, investors are required to pay a stipulated amount as an upfront margin for trading in the Cash/FO segment. We encourage all investors to regularly check their securities in the Consolidated Account Statement (CAS) issued by depository to verify their holdings.Always verify alerts and transaction details received directly from the exchange or NSDL before proceeding with any trades. Please do not make payments through unverified email links, WhatsApp, or SMS. Always trade through a registered stockbroker and verify all details before making financial decisions.
 
Disclaimer: Investments in the securities market are subject to market risks. Please read all related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. For more disclaimer /disclosure, visit https://univest.in/stock-broker or Univest App.We collect and use your contact information for legitimate business purposes, including providing updates on our products and services. We do not sell or rent your contact information to third parties. By submitting your details, you authorize us to contact you via Call/SMS, even if you are registered under DND. This authorization remains valid for 12 months.For grievances, please contact us at hello@unibrokers.in .
 
Univest Stock Broking Disclosures
Univest Stock Broking Private Limited - SEBI Reg. No. INZ000317437 (Stock Broker), NSE TM Code: 90392, BSE TM Code: 6866, MCX TM Code: 57290 and ICCL- Self Clearing Member Code: 6866, SEBI Reg. No. IN-DP-779-2024 (Participant), NSDL DP ID: IN304748.
 Risk Disclosures on Derivatives
1. 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
2. On an average, loss makers registered net trading loss close to ₹ 50,000
3. Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
4. Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Attention Investors: As per NSE circular dated July 6, 2022: https://nsearchives.nseindia.com/content/circulars/INSP52900.pdf, BSE circular dated July 6, 2022: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20220706-55, MCX circular dated July 11, 2022: https://www.mcxindia.com/docs/default-source/circulars/english/2022/july/circular-418-2022.pdf?sfvrsn=9401991_0, investors are cautioned to abstain them from dealing in any schemes of unauthorised collective investments/portfolio management, indicative/ guaranteed/fixed returns / payments etc. 
Investors are further cautioned to avoid practices like:
a. Sharing 
i) trading credentials – login id and passwords including OTPs.
ii) trading strategies,
iii) position details.
b. Trading in leveraged products /derivatives like Options without proper understanding, which could lead to losses.
c. Writing/ selling options or trading in option strategies based on tips, without basic knowledge and understanding of the product and its risks.
d. Dealing in unsolicited tips through platforms like Whatsapp, Telegram, Instagram, YouTube, Facebook, SMS, calls, etc.
e. Trading / Trading in “Options” based on recommendations from unauthorised / unregistered investment advisors and influencers.
 Kindly read the Advisory Guidelines For Investors as prescribed by the Exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client’s assets: https://nsearchives.nseindia.com/content/circulars/INSP49434.pdf
Kindly, read the advisory as prescribed by the Exchange with reference to their circular: NSE/ISC/51035 dated January 14, 2022 regarding Updation of mandatory KYC fields by March 31, 2022: https://www.nseindia.com/resources/exchange-communication-circulars# 
Attention Investors: Prevent unauthorised transactions in your Demat account by updating your mobile number with your depository participant. Receive alerts on your registered mobile number for debit and other important transactions in your Demat account directly from NSDL on the same day. Prevent unauthorised transactions in your Trading account by updating your mobile numbers/email addresses with your stock brokers. Receive information on your transactions directly from the Exchange on your mobile/email at the end of the day. Issued in the interest of investors. KYC is a one-time exercise while dealing in securities markets - once KYC is done through a SEBI-registered intermediary (Broker, DP), you need not undergo the same process again when you approach another intermediary. As a business, we don’t give stock tips and have not authorised anyone to trade on behalf of others. If you find anyone claiming to be part of Univest Stock Broking Private Limited and offering such services, please send us an email at hello@unibrokers.in
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.
Update your email ID and mobile number with your stockbroker/depository participant and receive an OTP directly from the depository on your registered email ID and/or mobile number. Check your securities/mutual funds/bonds in the Consolidated Account Statement (CAS) issued by NSDL every month.
Attention Investors: SEBI has established an Online Dispute Resolution Portal (ODR Portal) for resolving disputes in the Indian Securities Market. This circular streamlines the existing dispute resolution mechanism, offering online conciliation and arbitration, benefiting investors and listed companies https://www.sebi.gov.in/legal/circulars/jul-2023/online-resolution-of-disputes-in-the- indian-securities-market_74794.html. ODR portal for Investors - https://smartodr.in/login.
Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances.
arrow down