Best Logistics stocks in India

The Indian logistics industry is one of the largest in the world, playing a significant role in boosting the country's economy by facilitating the movement of goods and services within the country and internationally. In this blog, we will analyze the best logistics stocks in India.

The Indian logistics market is expected to grow by 8.8% annually to $215.83 billion by 2029 from $160.26 billion in 2024 due to technological advancements.

 
Logistics Sector of India in 2024 

India is geographically well-placed in the world map, and it makes us a significant player in terms of regional and global trade which further emphasized the need for a robust logistical network. Indian logistical industry was around $ 274 billion in size in 2022 and employed around 22 million people directly.  The Indian logistics sector broadly encapsulates 5 major services which include: 

•    Domestic Air Express Transportation 
•    Rail Transportation 
•    Road Transportation  
•    Cross Border Transportation 
•    Warehousing and Supply Chain Services 

However, there is still much room for improvement in the Indian logistics sector.  In terms of efficiency, the Indian logistics sector is still lagging even behind those countries that are a part of the BRICS. One method to measure the logistical efficiency of a country is the average logistics cost per GDP. The average logistics cost per GDP of BRICS nations is 11%, whereas for India it is 13%. 

 

 

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Best Logistics Stocks in India to Invest in 2024 

Given the importance of logistics for a nation's growth and the room for improvement in the Indian logistics sector gives the companies in this sector an opportunity to grow multiple times and could be an enticing investible avenue for the investors. Here are the top 6 best logistics companies in India to invest in 2024: 

Before investing in these stocks, you must know how to choose stocks for long term investment.

 
1). Blue Dart Express Limited

Blue Dart which was formed in 1991 has today become one of the most prominent names of the Indian logistics industry. It is mainly known for providing fast shipping services and is a distribution company responsible for providing timely delivery of goods across 55,400 locations in India.  

The company's operations are spread across diverse industries such as healthcare, banking, and e-commerce. The company emphasizes using modern technology to facilitate the swift transportability of goods and provide a seamless customer experience. It has also expanded its services beyond the geographical boundaries of India which makes it a lucrative investment avenue for investors. 

 

 
2). Container Corporation of India Limited (CONCOR)

CONCOR is a government-owned logistics company that deals in container delivery and operations in EXIM. In addition, it also provides services related to handling, transportation, and warehousing. The company has expertise in rail and road transportation in addition to logistical services.  

The network of CONCOR is huge and also has a strong global presence which allows it to expand its horizon internationally. The company's financials are strong and given its high working efficiency and strategic importance, it serves as an alluring investment option.  

 
3). GATI Limited 

Established in 1989, Gati Limited is a significant player in the Indian logistical industry which is engaged in providing fast transportation of goods through air and rail logistics, supply chain solutions business, freight forwarding, and E-commerce logistics.  

The company is a subsidiary of Allcargo Logistics and is a reliable transportation partner for many companies because of its strong network and technological expertise in this field. It also manages several fuel stations across different parts of the country. 

 
4). Gateway Distriparks Limited 

Gateway Distriparks is one of India's leading integrated intermodal logistics companies. The company has a strong network of 9 Inland Container Depots and Container Freight Stations which are located at diverse locations across the country. 

It provides transportation facilities to maritime ports with the help of its fleet of 31 trainsets and 500 or more trailers. In addition, the company is also engaged in providing end-to-end solutions to the EXIM industry and warehousing services. 

 
5). Transport Corporation of India Limited

Transport Corporation of India engages in Freight business, Supply Chain Solutions, and Sea Transportation. It is one of the most significant players in the business of integrated multimodal logistics and supply chain solutions.  

The company also provides a variety of logistical and supply chain solution transportation services through road, rail, and sea in India and other SAARC nations. Additionally, it also has other services in this area such as Warehousing, Port Logistics, Freight Forwarding, and Coastal Shipping. 

 
6). Allcargo Logistics Limited 

Established in 1993, Allcargo Logistics is a prominent name in the Indian logistical industry. Situated in Mumbai, it is one of the key Indian companies which transports goods through various modes. The company owned and operated by Avvashya Group has more than 300 offices and is expanded over 180 countries.  

It is India's largest privately-owned logistical solutions provider which provides different multimodal transportation options. The company is the world's No.1 less-than-container load consolidator in the Express Logistical Industry.  It also owns Gati Limited which is also a big name in the Indian Logistical Industry. 

 

 

Characteristics of India’s logistics sector 

• High Logistics Spending- India's total logistics spending accounts for 14% of its total GDP which is not a good sign as in developed nations this spending is quite less. The primary reason for such high spending on logistics is our inefficient logistics network.
• Highly fragmented Market Structure: The Indian logistical structure is highly fragmented and unorganized. There are too many players in this industry who are operating on a relatively smaller scale. The top 10 organized players in this industry comprise only 1.5 of the total logistical market in India.
• Services Offered: In markets like the US and China, companies offer integrated services. They are not just a company that only transports goods from one place to another but sometimes they are a part of the supply chain only and take care of the transportation when the company is done with the production. It allows them to occupy a major share in the sector. 

 

 

Bottom Line 

Logistical support is crucial for any country and India’s logistical industry is still growing which makes investing in this sector enticing. However, this industry is volatile, and the price of these stocks can fluctuate due to different reasons such as political changes, environmental changes, technological changes, or intense competition among many players. 

Therefore, investing in companies requires thorough research and understanding of this sector along with a certain degree of risk-taking appetite. If you take care of these things, then you can gain significantly by investing in the Indian logistics sector.