Top 10 Transportation & Logistics Stocks for 2021 | Best Transportation & Logistics Stocks in India

What is theme all about?

This theme is about riding the economic growth story of India. The sector comprises of Medium and Heavy commercial vehicles, Railways, Ports/Shipping/Shipyards, Airports/Airlines, Courier & Logistics. The sector is getting increasingly digitalized and improving operational and cost efficiency will make Indian logistics industry more competitive globally.

What are macro-economic factors, policy changes driving this trend?

The transportation & Logistics sector is expected to grow further given:-

Increasing government infrastructure investments

Consumer confidence and household spending remain strong; this should continue to drive demand for imports and boost inventory levels, which, in turn, will lead to increased demand for transportation and logistics services

Shift from unorganized to organized market.

Why is this theme attractive now?

Implementation of GST leading to consolidation, quicker turnaround time will drive the shift from unorganized to organized sector, positively impacting domestic transportation players

Investing in better road infrastructure will fasten the movement of goods, help in reducing the costs and improve turnaround time for vehicles.

Improving income, affordability, demand for personal vehicle are expected to be on a rising trend over the medium to long horizon is a head-on growth potential for Auto Industry.

What industries/ sectors benefit from this?

Logistics sector (railways/ports/shipping) would be a key beneficiary given improvement in infrastructure. Outsourcing of non-core operations of logistics would bring larger opportunities for larger players

Medium and Heavy Commercial Vehicles will benefit from increasing tonnage capacity and improving cost efficiencies.

Premiumization (desire for high end vehicles), improving affordability and low penetration likely to increase demand for passenger vehicles.

Transportation & Logistics Stocks

This Theme is available only for Superstars and Omega solution Subscribers.

This Theme is available only for Superstars and Omega solution Subscribers.

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