Logistics Stocks in India: What Makes Them A Good Investment?

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Logistics Stocks in India: What Makes Them A Good Investment?

Logistics Stocks in India: An Overview

India is the largest logistics hub in the world. The Indian logistics market is "one of the most efficient logistic warehouses on earth." By 2022, India will stop their industrialization program and focus on modernization, with many new factories opening up. This will cause industry-wide changes in the prices of goods transported to these factories. Industry experts predict manufacturers will start focusing more on domestic sales as commodities become more affordable, and it is predicted that India's domestic logistical companies will be among the busiest in the world by 2024.

Logistics Industry in India

Logistics stocks in India are expected to see a significant market shift in 2022 as the country undertakes large-scale infrastructure projects, such as the Mumbai-Ahmedabad high-speed rail project.

The Mumbai-Ahmedabad high-speed rail project is expected to create over 1 million jobs and generate $12 billion in investment. The government is also planning to build a Mangalore port and a Cochin port, which will help boost trade between India and other countries.

These projects indicate India's ambition to become an economic superpower by 2025. The country is also undertaking several other infrastructure projects, such as the Kaladan port in Myanmar, which will improve trade relations between India and Southeast Asia.

As a result of these investments, logistics stocks in India are likely to see significant growth in 2022. They may be worth investing in if you're interested in diversifying your portfolio and seeking higher returns.

Logistics Stocks in India: Why Should You Invest in Them?

India is a vast country with a population of over 1.3 billion people. Yet despite its large population and scale, the country ranks only 39th in the world for total logistic capacity, according to World Bank data. This lack of logistical capacity presents significant opportunities for companies that can develop or expand their operations in India. Logistics stocks in India are expected to experience a significant market shift as investors focus on companies that can provide innovative solutions to India's unique logistics challenges.

Logistics companies that can successfully address India's need for efficient and reliable transportation systems will be well-positioned in the coming years. Indian businesses also face increasing competition from China and other southeast Asian countries, which are rapidly developing their own logistics industries. These pressures have driven up the value of logistics stocks in India, making them desirable investments for financiers and entrepreneurs.

There are many advantages associated with operating in India:

  • A large domestic market
  • Engaged consumers whose areas of needs and wants are constantly evolving
  • Stringent safety and quality regulations
  • High growth rates
  • Low fixed costs
  • An expanding middle class with rising spending power.

All of these factors bode well for companies that operate in the Indian logistics stock market.

Best Logistics Stocks to Buy

In 2022, there are a few logistics stocks that investors should keep an eye on in India. 

Aegis Logistics

Aegis Logistics is a stock expected to see a significant market shift next year. The company is currently the largest logistics firm in India, with operations across more than 20 states.

Several factors back Aegis' growth prospects. It has an expanding customer base and favorable demographics. The company also has a strong presence in developed markets such as the US and Europe, which gives it plenty of opportunities to tap into new markets in Asia. In addition, Aegis has an excellent competitive position due to its large size and robust infrastructure.

Ritco Logistics

The company is well-positioned to benefit from the increased trade activity between India and China in 2022, making it another leading logistics firm in India. With significant cargo hubs in both countries, Ritco is well-positioned to take advantage of cross-border trade opportunities.

JITF Infra Logistics

JITF Infralogis is another logistics firm expected to grow significantly over the next year. The company provides logistic services for manufacturers and retailers across multiple geographies, including India. JITF's strong localization capability and focus on development projects make it a valuable strategic partner for businesses operating in emerging markets such as India.

 Sanco Trans

Sanco Trans is another critical player in the Indian logistics market that investors should watch closely in 2022. The company provides transport, warehousing, and distribution services to various businesses across India and other geographies. Sancho's extensive network and dealer base give it an edge over its competitors.

Flomic Global Logistics

Flom Global is also expected to experience strong growth in the next year. The company is a leading provider of e-commerce logistics services to retail investors in India and other emerging markets. Flom is well-positioned to benefit from the growth opportunities associated with the expanding e-commerce market in India.

Chartered Logistics

Chartered Logistics is another high-quality logistics firm that investors should keep an eye on in 2022. The company has a strong presence in key economies such as China and the US, which gives it a substantial competitive advantage. In addition, Chartered is well-funded, which enables it to expand rapidly into new markets.

MFL India

MFL India is another important player in the Indian logistics market that investors should keep an eye on in 2022. In addition to manufacturing, retail, and pharmaceutical industries, the company provides logistics services. NFL's diversified customer base and solid operating fundamentals make it one of the most promising stocks in the Indian logistics sector.

Stock Name

Share Price

(INR)

52 Week High

(INR)

52 Week Low

(INR)

Market Cap (Rs. cr)
Aegis Logistics272.40303.55167.259,647
Ritco Logistics193.30255.00112.45475
JITF Infra Logistics122.80337.2597.65306
Sanco Trans710.601158.00463.35124
Flomic Global Logistics129.95216.3090.9075
Chartered Logistics5.7923.555.1859
MFL India1.022.790.3838

(Share Price as of 17th October 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Conclusion

Logistic stocks are a great way to invest in the future of transportation and infrastructure. With the world becoming increasingly connected, there is a growing demand for efficient and reliable logistics stock. Investing in logistic stocks now could help you reap big rewards in future years. Do your research and consider investing in some of the leading companies in this industry to ensure a bright future for your portfolio.

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.

  • What is the difference between transportation and logistics stocks?

  • What are some examples of well-known logistics companies?

  • Why is the logistics sector important?

  • What trends are driving growth in the logistics sector?

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