Best Logistics Stocks in February 2025: Globe International Carrier, Tiger Logistics and More- Based on 5-Year CAGR

India’s logistics sector, a key driver of economic growth, is evolving rapidly with advancements in technology and efficiency. It encompasses transportation, warehousing, inventory management, and supply chain operations. Improved infrastructure and innovation have enhanced cost-effectiveness, making logistics companies attractive investment opportunities amid rising demand for seamless trade and commerce.

India climbed to 38th in the World Bank’s Logistics Performance Index in 2023, reflecting significant sectoral progress. A LogiMAT India report forecasts an 8.8% annual growth rate, with the sector reaching $484.43 billion by 2029 from $317.26 billion in 2024, fueled by digital transformation and increasing reliance on automated logistics solutions.

Best Stocks Logistics Stocks In February 2025 – 5-Yr CAGR Basis

Note: The list of logistics stocks to buy in India has been selected based on the 5-year CAGR. The following parameters have been used to screen the stocks.

Overview of the Best Logistics Stocks

1. Globe International Carriers Ltd

Globe International Carriers Ltd. (GICL), a leading logistics provider since 1965, offers seamless multimodal cargo transport across India and Nepal. Leveraging technology and a vast network, GICL delivers cost-effective, end-to-end supply chain solutions tailored to client needs.

For Q2 FY25, Globe International Carriers Ltd reported unaudited figures of ₹179.87 crore in revenue and ₹134.60 crore in expenses. For FY24, the audited numbers showed revenue of ₹228.81 crore and expenses of ₹172.23 crore.

Key metrics:

• Earning per Share (EPS): ₹1.03
• Return On Equity (ROE): 5.62%

2. Tiger Logistics Ltd

Tiger Logistics (India) Ltd. provides global supply chain solutions across industries like automobiles, textiles, and pharmaceuticals. Services include air and ocean freight, project and defence logistics, cold chain solutions, and customs clearance, ensuring efficient and tailored transportation for diverse client needs.

Tiger Logistics reported a YoY surge in Q2FY25 net sales to ₹160.17 crore, with net profit rising to ₹7.54 crore. For FY25’s first half, net sales rose to ₹261.33 crore, with profit up to ₹12.17 crore.

Key metrics:

• EPS: ₹1.88
• ROE: 16.10%

3. Sindhu Trade Links Ltd

Sindhu Trade Links Ltd. is a diversified Indian holding company operating in transportation, logistics, oil, finance, power, media, oil drilling, and coal trading. Its subsidiaries include Hari Bhoomi Communications Pvt., contributing to its broad industry presence and business expansion.

In Q2 FY25, Sindhu Trade Links Ltd reported a YoY rise in revenue to ₹635.62 crore. Net profit surged to ₹116.54 crore, with net profit margins rising from 73.59% to 18.33%, marking strong quarterly growth.

Key metrics:

• EPS: ₹1.16
• ROE: 11.41%

4. Chowgule Steamships Ltd

Chowgule Steamships Ltd. (CSL), founded in 1963, is a leading Indian shipping company transporting bulk cargo like iron ore, coal, and grains. A pioneer in India’s shipping sector, CSL built the first Indian bulk carrier and introduced coastal trade.

Chowgule Steamships Ltd reported ₹93.72 lakhs in revenue for Q2 FY25, with total expenses at ₹97.43 lakhs. Net profit stood at ₹33.41 lakhs, down from ₹81.14 lakhs YoY.

Key metrics:

• EPS: ₹0.70
• ROE: 5.78%

5. Shree Vasu Logistics Ltd

Shree Vasu Logistics specialises in warehouse renting and transportation, offering end-to-end logistics solutions. Its services include transportation, distribution, warehousing, in-factory logistics, and value-added solutions, catering to diverse client needs with customised and efficient supply chain management.

In Q2 FY25 Shree Vasu Logistics reported an 8.39% rise in net sales to ₹34.60 crore in September 2024. However, its quarterly net loss widened to ₹0.05 crore, while EBITDA declined slightly by 0.57% to ₹8.65 crore compared to the previous year.

Key metrics:

• EPS: ₹1.64
• ROE: 5.71%

Best Logistics Stocks in February 2025- Based on Market Cap

Note: The list of best logistics stocks is as of February 5, 2025. The stocks are sorted based on market capitalisation.

Best Logistics Stocks in February 2025- Based on Net Profit Margins

Note: The list of best logistics stocks is as of February 5, 2025. The stocks are sorted based on net profit margins.

Factors to Consider Before Investing in Logistics Stocks in India

Investing in logistics stocks can offer significant returns, but it requires careful evaluation of several key factors to make informed decisions. Here are essential considerations for potential investors:

Infrastructure

The infrastructure of a logistics company is a vital element in evaluating investment potential. The sector involves a variety of facilities like warehouses, distribution centres, transport modes, ports, and terminals. A well-managed infrastructure is crucial for efficiency and productivity, which directly impacts the company’s performance and growth prospects.

Technological Integration

Technology plays a critical role in enhancing the efficiency of logistics operations. Advancements like automation, GPS tracking, and logistics apps make operations more cost-effective and streamlined. Companies integrating these technologies are better positioned for growth, which may boost stock value.

Supply Chain Resilience

A logistics company’s ability to withstand disruptions, such as natural disasters or geopolitical trade challenges, is essential. Companies with resilient supply chains reduce risks and costs, which in turn increases investor confidence and positively affects stock prices.

Financial Performance

Before investing, analysing a logistics company’s financial health is crucial. Investors should assess revenue growth, profitability, margins, and cash flow to ensure the company is financially robust. Strong financial performance and sustainable growth are key indicators of a good investment opportunity.

Competitive Position

A company’s market position is another important factor. Evaluate market share, service offerings, customer relationships, and geographical reach. Logistics companies with strong competitive advantages and differentiation strategies are better equipped to maintain long-term success.

Management Team

The effectiveness of a logistics company’s management plays a significant role in its growth trajectory. Thoroughly assess the leadership team’s track record and decision-making ability. Effective management can drive success, helping the company navigate challenges and capitalise on opportunities.

Impact of Crude Oil Prices

Fluctuations in crude oil prices can significantly impact logistics costs, as fuel expenses are a major cost component. Investors should look for companies that are adaptable and can manage costs effectively in the face of such fluctuations.

Conclusion

Logistics companies are essential for transporting goods across industries, making them an attractive investment option. However, the industry is also prone to challenges such as natural disasters, economic downturns, regulatory changes, rising fuel costs, and competition.

Investing in logistics stocks carries inherent risks. Factors like geopolitical tensions, disruptions in supply chains, and increasing labour shortages can affect profitability. As with any investment, thorough research and monitoring of market trends are necessary to make the best investment decisions aligned with financial goals and risk tolerance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.