Best Logistics Stocks in India – September 2024 – 5yr CAGR Basis

The logistics industry is essential to India’s dynamic economy, facilitating the efficient movement of goods and services across its vast territory. According to a report released at the LogiMAT India logistics fair, the Indian freight and logistics market is projected to grow at an annual rate of 8.8%, reaching USD 484.43 billion by 2029, up from USD 317.26 billion in 2024. This growth is driven by technological advancements. The logistics and supply chain sector in India is undergoing a significant transformation, propelled by various government initiatives designed to enhance the industry. In this article, check the best logistics sector stocks in India in September 2024, based on 5yr CAGR. 

Best Logistics Stocks in India – September 2024 – 5yr CAGR Basis 

Note: The logistics sector stocks listed here are as of September 23, 2024. The stocks are of market cap of more than ₹5,000 crore and are sorted based on the 5-yr CAGR. 

Overview of the Best Logistics Stocks in India

• Shipping Corporation of India Ltd

Shipping Corporation of India transports goods and passengers. In FY 2024, the company’s standalone total income was ₹5,262 crore, down from ₹5,907 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹612 crore, compared to ₹800 crore in FY 2023.

Key metrics:

• ROCE: 8.89%
• ROE: 9.40%

• Transport Corporation of India Ltd

Transport Corporation of India is engaged in freight transport, supply chain solutions, and transport through Seaways. In FY 2024, the company’s standalone total income was ₹40,700 million, up from ₹38,128 million in FY 2023. The profit for the year ended March 31, 2024, was ₹3,545 million, compared to ₹3,206 million in FY 2023.

Key metrics:

• ROCE: 18.10%
• ROE: 18.61%

• Blue Dart Express Ltd

Blue Dart Express Ltd South Asia’s premier express air, integrated transportation & distribution company, offers secure and reliable delivery of consignments to over 55,400+ locations in India. In FY 2024, the company’s total income was ₹5,31,867 lakh, up from ₹5,20,426 lakh in FY 2023. The profit for the year ended March 31, 2024, was ₹30,101 lakh, compared to ₹37,053 lakh in FY 2023.

Key metrics:

• ROCE: 23.90%
• ROE: 23.64%

• Allcargo Logistics Ltd

Allcargo Logistics offers integrated and specialised logistics services for multimodal transport operations, container freight station operations, inland container depots, contract logistics operations, and project and engineering solutions. In FY 2024, the company’s total income was ₹13,26,629 lakh, down from ₹18,11,543 lakh in FY 2023. The profit for the year ended March 31, 2024, was ₹14,000 lakh, compared to ₹65,321 lakh in FY 2023.

Key metrics:

• ROCE: 8.26%
• ROE: 5.22%

• VRL Logistics Ltd

VRL Logistics is involved in logistics services dealing primarily in the domestic transportation of goods. In FY 2024, the company’s total income was ₹2,90,971.85 lakh, up from ₹2,66,286.66 lakh in FY 2023. The profit for the year ended March 31, 2024, was ₹8,906.10 lakh, compared to ₹16,613.75 lakh in FY 2023.

Key metrics:

• ROCE: 10.93%
• ROE: 9.25%

• Container Corporation of India Ltd

Container Corporation Of India (CONCOR) offers inland transportation of containers by rail. It also manages Ports and air cargo complexes and establishes cold chains. In FY 2024, the company’s total income was ₹8,653.41 crore, up from ₹8,169.12 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹1,262.09 crore, compared to ₹1,173.55 crore in FY 2023. 

Key metrics:

• ROCE: 13.60%
• ROE: 10.83%

Logistics Sector Growth in India

The Indian logistics sector is among the largest in the world and plays a vital role in driving economic growth. After contracting by 2% in FY21, the market rebounded strongly in FY22, achieving remarkable growth of 14% and reaching a value of US$435 billion. The logistics market in India is expected to expand further, reaching US$591 billion by FY27.

In FY22, organised players accounted for only 5.5-6% of various logistics market segments, including road transportation, warehousing, and supply chain services. However, organised players are projected to experience a substantial CAGR of around 32% from 2022 to 2027. As a result, their market share is expected to increase to 12-15% by FY27. This transformation will likely be driven by organised players’ ability to offer integrated services, leverage efficiencies from their networks and scale, and invest significantly in technology and engineering. These initiatives are expected to enhance their competitiveness and help them capture a larger share of customer business.

Conclusion

Apart from this, there are other logistics sector stocks in India as well. Make sure to go through the company’s business, financials and future prospects. Talk to a financial advisor before making a decision.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.