Commerce has stitched much of the world together, facilitating seamless movement of goods within and outside the national borders. The logistics sector in India, driven by significant improvements in infrastructure such as an expanding highway network, a well-connected railway network, and seaports, is a vital link in the long supply chain that stretches from factories to the end-consumer. Logistics companies in India are at the forefront of this moving business. These firms are a good investment choice for investors who want exposure to India’s fast-growing logistics sector. Read more to learn about the logistics industry in India and some of the leading companies in the sector.
Logistics industry in India: A brief overview
The Indian logistics industry contributes 14% to India’s GDP and employs over 22 million people. The sector will create 1.2 million new jobs by 2025, according to estimates. The companies operating in the logistics sector are exposed to industries such as transportation and warehousing, not to mention value-added services like packaging, labeling, and inventory management. Logistics companies in India have become more efficient, thanks to improvements in technology. Growth of online shopping has also given a boost to logistics companies in India as they ship goods to the end-consumer.
Dedicated rail-based freight corridors, focus on multi-modal connectivity, a Logistics Efficiency Enhancement Programme and efforts to support sustainability inject some vim and vigour into the industry. Technology, speed, and efficiency throughout the logistics value chain make this sector a preferred choice for investors.
Top logistics stocks in India in 2024 by market capitalization
India’s dynamic economy depends on the logistics sector to move goods efficiently. The country’s supply chain and logistics business is undergoing a major transition due to a number of government programs aimed at improving the sector. Here is an overview of the best logistics stocks in India.
| Name | Mar Cap (Rs. Cr.) | P/E | Div Yld |
| Container Corp. | 54,184.63 | 42.58 | 1.30% |
| Delhivery | 30,896.55 | – | 0.00 |
| Blue Dart Express | 20,180.02 | 68.83 | 0.28% |
| Great Eastern Shipping | 18,888 | 6.61 | 2.19% |
| Shipping Corp. of India | 11,307 | 15.1 | 0.19% |
| TVS Supply | 8798.75 | – | 0.00% |
| Transport Corp. | 8192.97 | 22.4 | 0.91% |
| VRL Logistics | 5,014.13 | 73.4 | 0.00% |
Overview of the best logistics stocks in India
As India’s economy is growing fast, there is a greater demand than ever for efficient logistics solutions. The top logistics companies in India for 2024 are listed below.
Container Corp.
Container Corporation of India Limited (CONCOR) is a holding company engaged in logistics and transportation. The company operates in two segments: EXIM and Domestic. Transportation and warehousing activities are managed by both divisions. CONCOR offers rail and road container transportation services and logistics facilities such as dry ports and container freight stations. Its international services are air cargo movements, bonded warehousing, and cold chain services.
Delhivery
Delhivery Limited is a comprehensive logistics company offering express parcel delivery, partial transport, full transport freight services, and supply chain solutions. With heavy goods delivery services for items like large appliances, furniture and sports equipment, its express parcel delivery network covers more than 18,500 postal codes across India.
Blue Dart Express
Blue Dart is one of the leading logistics companies in India. Blue Dart Express Ltd is South Asia’s leading integrated air express carrier and premium logistics services provider. It offers secured and reliable delivery of consignments to over 55,000 locations in India. As a part of the Deutsche Post DHL Group’s (DHL Express, DHL Global Forwarding & DHL Supply Chain) Post – e-commerce – Parcel (PeP) division (DPDHL Group), the company has access to the largest and most comprehensive express and logistics network worldwide through DHL. It covers over 220 countries and territories and offers an entire spectrum of distribution services including air express, freight forwarding, supply chain solutions, and customs clearance.
Great Eastern Shipping
The Great Eastern Shipping Co. Ltd is India’s largest private-sector shipping company. The shipping business is involved in the transportation of crude oil, petroleum products, gas and dry bulk commodities.
Shipping Corp. of India
Shipping Corporation of India Ltd (SCI) is one of India’s largest shipping companies in terms of flagged tonnage. The company is involved in the business of transporting goods. SCI’s owned fleet includes Bulk Carriers, Crude Oil Tankers, Product Tankers, Container Vessels, Passenger-cum-Cargo Vessels, LPG carriers, and Offshore Supply Vessels. In addition, SCI manages a large number of vessels on behalf of various government departments and other organizations.
TVS Supply
TVS Supply Chain Solutions Limited provides supply chain logistics services and is divided into two segments: Integrated Supply Chain Solutions (ISCS) and Network Solutions (NS). The company provides sourcing, procurement, transportation, logistics operations, in-plant logistics operations, fulfilment, and consulting services in the ISCS segment.
Transport Corp. of India
Established in 1958, Transport Corporation of India (TCI) is India’s leading integrated supply chain and multimodal logistics service provider and a pioneer in the sphere of cargo transportation in India. The company provides a range of services, including freight, supply chain, warehousing solutions and shipping services. Its services cover the entire supply chain right from the point of origin to the end consumers.
VRL Logistics
VRL Logistics Limited, incorporated in March 1983 is one of the leading logistics service providers in the country. The service offerings of the company in the logistics space are goods transport, passenger transport, and courier services apart from the transport of passengers, and wind power generation business. The firm has a very well-diversified customer base. VRL is a well-established brand in the country when it comes to surface transportation and the industry leader in the parcel transportation space. It is also the leading name in the private bus operations industry and one of the biggest private sector operators in this space.
Factors to consider before investing in logistics stocks in India
Before investing in the best logistics stocks in India, it is advisable to consider various factors that can impact the companies operating in the sector.
Infrastructure
The quality of infrastructure will significantly impact a company’s ability to scale and compete. Warehouses, distribution centres, and transportation networks are robust logistics infrastructures that directly affect the efficiency and cost of operations.
Technological integration
Technological integration is important to the success of logistics companies. Warehouse automation, GPS tracking, and supply chain management software cut costs and enhance operational efficiency and customer satisfaction using various types of technology. The top logistics companies in India that invest in innovative technologies will be well-equipped to adapt to changes in market dynamics and customer expectations.
Supply chain resilience
An uninterrupted supply chain is a prerequisite for smooth logistics operations. Study the company’s ability to gain resilience through its supply chain to handle things such as geopolitical tensions, pandemics or natural disasters. Solid logistics firms have strong partnerships with suppliers and would be able to move goods fast.
Financial performance
Assess a company’s financial health before investing. Check the key metrics such as revenue growth percentage, profit margins, return on investment, and debt levels. A strong financial performance shows that a company is managed effectively, and is in a good position to increase revenue in the future.
Competitive position
Learn how the company’s market share and competitive position compare to competitors. The logistics sector in India is fragmented. Hence, firms that offer a wide variety of services and have a lot of clients in the logistics industry seem to enjoy an advantage. Try and find firms that have a clear differentiation strategy.
Management team
Long-term success requires a good management team with a proven track record. Growth-oriented leaders can deconstruct problems, find opportunities, and navigate challenges to enable growth. Look up the background of major executives and assess if they have a vision for the company.
Impact of crude oil prices
Crude oil prices impact the profits of logistics companies in India considerably. Transportation is a major component of the operating cost of logistics firms and hence, fluctuations in oil prices matter. A strategy for reducing fuel price volatility through fuel-efficient technology or long-term supply contracts would help mitigate the impact of fuel prices.
Should you invest in logistics stocks?
Logistics stocks are a promising investing opportunity as the sector is a vital link in the global supply chain. Logistics companies in India are on the ascendant, thanks to the increase in online shopping and the need for more efficient transport. Government initiatives such as the National Logistics Policy help streamline operations, boosting the sector’s potential.
For example, logistics stocks are quite sensitive to fuel price changes, regulations or economic slowdowns. Investors should study individual companies carefully and evaluate them based on market position and growth strategies. If you are a long-term growth investor, logistics stocks could be an excellent addition to a well-rounded, diversified portfolio.
Conclusion
There is immense potential for investing in logistics companies in India, thanks to the booming e-commerce sector, expanding infrastructure, and government initiatives. With growing demand from consumers, globalization, and technological progress, the logistics sector is expected to expand rapidly. For investors seeking to capitalize on India’s logistics boom, these stocks could be a good fit for their portfolios.
