After the launch of National Logistics Policy (NLP) launched by the government many analyst and brokerage firms have caught a eye on the stocks from the logistics sector. The NLP has mentioned many plans for the logistics industry on the upcoming year and so on and the main objective of the government is to bring down the logistic expenses to single digit on GDP currently it cost 13-14%.
As per the latest reports of Sharekhan the underlying vision of policy is "to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth."
Here is detailed breakdown of the latest report of Sharekhan on logistic stocks.
Logistics Sector Outlook Of India
"Expect high growth over a longer term for logistics players: The launch of National Logistics Policy is a key milestone for the logistics sector. We believe the demand environment for the logistics sector is expected to remain strong over a longer period due to structural growth drivers led by NLP and well supported by past initiative like GST, Atmanirbhar Bharat, FASTag, Make in India, PLI, and GatiShakti, etc. These moves are expected to curb unscrupulous activities and organise the sector over the longer run. We believe organised players remain at the forefront to benefit from the government's focus on logistics sector. Further, growth in the sector is expected to
be broad-based across rail, road, sea, supply chain management, and cold chain, etc. Consequently, logistics players have announced capex plans across various verticals to capture the high demand" said the latest report of Sharekhan on Logistics sector.
Buy Call By Sharekhan On Logistic Stocks
The latest report of Sharekhan has given buy call to 3 stocks from the logistic sector. The three stocks recommended by Sharekhan are:
• TCI Express: The current market price of the stock is Rs. 1951 and Sharekhan has given the target price of Rs. 2,170 for the stock.
• Transport Corporation Of India: The current market price of the stock is Rs.794 and the brokerage firm has given a target price of Rs. 850 for the stock.
• Mahindra Logistics: The stock currently is trading at the price of Rs.551 and the target price given by Sharekhan for the stock is Rs. 600.
Outlook On Stocks Recommended By Sharekhan
• TCI Express: The company is a cargo logistics company that has its own setup across India. The company carries distribution through many different transportation modes and it specializes in offering solutions in time.
• Transport Corporation of India: The Transport Corporation Of India is engaged in Business of Supply Chain Solutions, Freight Transport, Transport through Seaways. It has presence across many different segments of logistics Industry including warehousing, transportation, and supply chain management.
• Mahindra Logistics: Mahindra Logistics is a leading logistic company owned by Mahindra Group. The company is a provider of integrated logistics and mobility solutions. The business provides Supply Chain knowledge to a wide range of industry verticals, including Consumer Goods, Automotive, Engineering, Telecommunications, Commodities, Pharmaceuticals, and E-Commerce.