Warehousing Stocks – The Hidden Gems of Logistics

Warehousing = Backbone of Logistics

– Shift to centralized warehouses post-GST
– Surge in e-commerce + D2C driving storage demand
– Infra-focused REITs tapping into warehousing boom

Top Warehousing-Linked Stocks

– Allcargo Logistics – Strong contract logistics & warehousing
– Indospace (via ESR India, if listed) – Warehousing REIT play
Mahindra Logistics – Expanding built-to-suit warehouses

Why Warehousing Is Attractive

– High demand from FMCG, pharma, electronics
– Long-term leasing = stable rental yields
Low vacancy in top logistics hubs (Mumbai, NCR)

Challenges to Watch

– High upfront land and construction costs
– Regulatory hurdles in zoning and approvals
– Slow adoption in rural/semi-urban belts

Investment Insights

– Focus on 2–3 year horizon
– Buy low, wait for re-rating