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The logistics sector has experienced rapid growth in recent times, thanks to the e-commerce boom, rising disposable incomes, and the government’s focus on infrastructure development in India.
For investors seeking businesses with significant growth potential, logistic stocks present a promising opportunity. The expansion of India’s logistics industry is expected to persist, making it an attractive investment avenue.
Investing in logistic stocks not only allows investors to diversify their portfolios but also investors can be a part of this growing industry and enjoy the return on their investments.
Statista claims that in the year 2022, the Indian logistics market was valued at approximately USD 274 billion. Projections indicated that by 2030, this market is expected to expand to USD 563 billion dollars, with a compound annual growth rate of 9.4%. India’s logistics cost as a percentage of GDP stands at 14%, which is higher than the average logistics cost of 11% among the BRICS countries.
In 2021, the total number of annual online shoppers in India reached approximately 185 million, representing a notable increase compared to the preceding year. Looking ahead, it is anticipated that the annual number of online shoppers will experience further growth and is projected to reach 425 million by the year 2027.
Over the past three years, there has been a significant rise in the number of new users who are eager to explore e-commerce services across the entire country. Notably, non-metro users have contributed significantly to the overall user base in the fiscal year 2023, according to Redseer Research & Analysis.
With consumers rapidly adopting online shopping and renewed thrust from leading consumer goods and retail players in the country, the gross merchandise value (GMV) of India’s e-tailers touched USD 60 billion in FY2023.
| Year | Gross Merchandise Value USD Billion | % Change |
| FY19 | 22 | – |
| FY20 | 25 | 13.6% |
| FY21 | 36 | 44.0% |
| FY22 | 49 | 36.1% |
| FY23 | 60 | 22.4% |
| Company Name | CMP Rs | Mar Cap Rs Cr | Sales FY23 Rs Cr | OPM % | Net Profit Rs Cr | 3-Month return % |
| Delhivery | 402.90 | 29,529.72 | 6,658.66 | -5.84 | -812.30 | 7.40 |
| Blue Dart Express | 6,950.05 | 16,492.49 | 5,116.46 | 16.83 | 370.53 | 21.68 |
| Allcargo Logistics | 302.65 | 7,435.97 | 18,050.77 | 6.26 | 653.21 | 10.14 |
| VRL Logistics | 742.95 | 6,563.48 | 2,648.52 | 15.25 | 323.20 | 18.39 |
| TCI Express | 1,561.35 | 5,983.74 | 1,241.01 | 15.67 | 139.28 | 6.60 |
| Transport Corporation of India | 750.55 | 5,821.53 | 3,782.57 | 11.25 | 320.59 | 18.71 |
| Mahindra Logistics | 369.00 | 2,658.14 | 5,221.61 | 4.99 | 24.63 | -0.15 |
| Gati | 146.90 | 1,911.63 | 1,723.17 | 4.06 | -10.91 | 22.30 |
The operating profit reported by the company was Rs 191 Crore, down from Rs 267 Crore in the same quarter last year. The operating profit margins were at 15%. Furthermore, the net profit of the company stood at Rs 61 Crore, a decrease from Rs 119 Crore in the same quarter last year, showing an 11.6% decline on a sequential basis.
Overall, Blue Dart Express’ June quarter results were not impressive.
Now, let’s examine the result of Mahindra Logistics. The company’s revenue showed a YoY growth of 7.78%, increasing from Rs 1199.90 Crore to Rs 1293.22 Crore. However, on a sequential basis, it remained flat, moving from Rs 1272.51 Crore to Rs 1293.22 Crore.
The operating profit for the company was Rs 66.63 Crore, almost unchanged from Rs 66.71 Crore in the same quarter last year, and the operating profit margins were a modest 5.15%. On the other hand, Mahindra Logistics reported a net loss of Rs 8.46 Crore during the June quarter, in contrast to a profit of Rs 11.30 Crore in the same quarter last year. Even on a sequential basis, the net loss increased from Rs 1.03 Crore to Rs 8.46 Crore.
In short, the result of Mahindra Logistics also showed mixed performance during the June quarter.
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.
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