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Top stocks in Logistics sector – Overview, Future prospects & trends in logistics sector

Written by - Rudri Rawell

June 23, 2023 8 minutes

The Indian logistics sector has witnessed substantial growth in the last few years. The continued growth that was temporarily marred by the COVID-19 pandemic has once again picked pace due to the country’s robust retail and manufacturing ecosystem. With a large middle-class population, the Indian retail consumer market is considered to be the primary driver of growth in the logistics sector. One of the drawbacks faced by the sector is the lack of efficient and new-age operations.

Read More – Sectors that are expected to do well in 2023

However, since the last couple of years, there has been a rapid and impactful change seen in the Indian logistics sector. 

So, how will the sector shape up in the coming years? What could be the challenges in its growth journey? Here’s a detailed look at the Indian logistics sector along with top stocks by market capitalisation.

Current state of the logistics industry in India

India’s economic growth story is demanding a comprehensive and end-to-end logistical network across the country. To cater to the rapid growth in demand for e-commerce businesses combined with the upward growth in manufacturing through the government’s “Make in India” initiative, there is a sudden growth spurt in the Indian Logistics industry.

Did you know

The Indian logistics industry is growing at an unprecedented pace and is likely to cross a valuation of $380 bn by 2025 itself!

The logistics sector currently includes many players ranging from small companies to medium and large multinational corporations. Thus, the sector is said to be undergoing constant consolidation and standardization. Apart from this, the logistics sector is also seeing various technological progression and digital transformations. This is helping the sector gain better agility and integration in transportation. There is also a better connect seen between users and third-party service providers. 

As customers of this industry are in need of more customised and cost-effective solutions, there is an emergence of third-party and fourth-party logistics service providers to deal with complex supply chain bottlenecks.

Growth drivers in Indian logistics sector

Some of the factors driving growth in this sector are:

  1. Supportive government regulations

Continued sectoral expansion, aided by various reforms announced by the government, the logistics sector is slated to be one of the key growth drivers for the Indian economy. Also, with the introduction of GST, all manual transactions are now digital, for example, e-way bills and Fastags that have enhanced the transparency in processes of the sector.

  1. Growing competition

A large number of start-ups are entering the logistics space in India. This has aided the sector’s growth with constant innovation and newer solutions being brought into the market. Since multiple companies operate through the sector’s supply chain, customers are also enjoying enhanced solutions with the growing competition.

  1. Technological revolution

New-age technological advancements have revolutionized the logistics sector. Apart from start-ups, various market leaders are also adopting automation and additional technology to deliver valuable logistical solutions. This has also helped companies cut down costs and minimize manual intervention.

Hindrances in logistics sector growth

Lack of infrastructure

One of the main challenges facing the logistics sector in India is the lack of modern infrastructure. This hinders smooth transportation which is the key to any logistics business. The country is also lagging behind in the development of port and roadways infrastructure which results in a significant impact on the transportation of goods. 

Rising costs

With rising fuel costs and constant policy changes, the logistics sector is also facing the challenge of reducing margins. 

Insufficient digitisation

While the logistics sector has adopted various technological enhancements over the past few years, the sector continues to struggle when it comes to safeguarding crucial documentation. This is due to the lack of digitisation of data and manual processes being continued.

Policy changes

The Covid-19 pandemic triggered several policy changes as a result of lockdowns that impacted the workers in this sector. This resulted in constant delays and even stoppage of work, further causing substantial disruption in the supply chain.

Stringent compliance requirements 

The logistic sector has to follow many compliances as per the defined timelines. This can allow them to retain import and export licenses. With other stringent aspects like tax compliances, insurance policies, and bank guarantees to be followed, the sector sees harsh implications if these are not followed.

Top stocks in the Indian logistics sector

Container Corpn.Of India Ltd

This company is in the business of transportation and logistics. Its core business activities include operating as a carrier, as a terminal operator, and as a warehouse operator. CONCOR has also diversified into container logistics including container port, Air Freight Station, Logistics Park, Warehousing, Air cargo Complex, Supply chain management, etc. Domestically, the company offers services like door delivery, pickups, terminal handling, etc. The key details of the company are tabled below.

Market Capitalization Rs. 40,271 crores
PE Ratio34.30
Return on Equity10.68% (June’23)
Debt Equity Ratio0.07 (June’23)
Promotor’s Holdings54.80%
Share priceRs. 633 (20 June 2023)
Dividend Yield1.70%

Blue Dart Express Ltd.

Blue Dart Express Ltd is India’s and South Asia’s premier courier company that offers express package distribution. As part of its courier services, it offers features like regional services, domestic priority, dart surface line, and dart apex. The company has owned charter planes to deliver cargo. Some of its other e-business solutions include ShipDartTM, InternetDartTM, PackTrackTM, MobileDartTM, ShopTrackTM, and ImageDartTM. The company has also come up with various value-added services like Duties and Taxes Paid for Indian exporters to seamlessly manage their shipping needs. The key details of the company are tabled below.

Market Capitalization Rs. 15,781 crores
PE Ratio42.59
Return on Equity36.12% (June’23)
Debt Equity Ratio0.95
Promotor’s Holdings75%
Share priceRs. 6,630 (20 June 2023)
Dividend Yield0.45%


Delhivery is a supply chain services firm offering services like freight, transportation, warehousing, and order fulfilment. It runs a web platform called offering last-mile delivery, reverse logistics, payment collection, third-party and transit warehousing, vendor-to-warehouse, etc. It has a unique strategy focusing on faster delivery speed to minimise costs and attract e-commerce supporters. The company got listed after an IPO this year. The key details of this company are tabled below.

Market Capitalization Rs. 28,641 crores
PE Ratio
Return on Equity-13.32% (June’23)
Debt Equity Ratio0.10
Promotor’s Holdings
Share priceRs. 388 (20 June 2023)
Dividend Yield

Aegis Logistics Ltd.

Aegis Logistics Ltd is a leading oil and gas logistics company. Apart from integrated supply chain management, the company also offers product sourcing, shipping, storage and port operations, and road and pipeline movement. The company also offers facilities like jetty operations, loading and unloading against fees. Some of its other businesses include importing, marketing, and distributing bulk propane and liquid petroleum gas. This caters to various industrial customers across the steel, glass, ceramics, and pharmaceutical industries. The key details of the company are tabled below.

Market Capitalization Rs. 12,166 crores
PE Ratio26.28
Return on Equity16.21% (June’23)
Debt Equity Ratio0.54 (June’23)
Promotor’s Holdings58.07%
Share priceRs. 347 (20 June 2023)
Dividend Yield1.37%

Allcargo Logistics Ltd.

Allcargo Logistics Ltd is a logistics company established in 1993, offering services like inbound & outbound consolidation, FCL forwarding, multi-city consolidation, CFS operations, project cargo handling, airfreight forwarding activities and transportation. Some of its other businesses also include Project & Engineering Solutions, Multimodal Transport Operations and Container Freight Station. The key details of the company are tabled below.

Market Capitalization Rs. 7,107 crores
PE Ratio10.41
Return on Equity21.07% (June’23)
Debt Equity Ratio0.42 (June’23)
Promotor’s Holdings69.92%
Share priceRs. 288 (20 June 2023)
Dividend Yield1.64%


Most logistics providers in India are now focusing on faster adoption of technology. Apart from well-established companies, even smaller fleet owners have started expanding their services in the logistics industry. Therefore, the sector offers a larger potential for growth in the future. As the D2C business models continue to rise, the industry is slowly shifting towards smaller-sized shipments and quicker deliveries. Automation through technology, drone-based delivery services, sustainability, e-commerce, and fast-changing consumer needs are factors that will narrate this sector’s future. 


Why is the logistics sector crucial to Indian economic growth?

Logistics is at the heart of all movement to be done by manufacturing and production companies in India. Therefore, with the growing demand for goods and services, there is also a fast increasing demand for logistics which is in turn, driving economic growth.

How is the costing of Indian logistics sector different from global economies?

The logistics sector in India costs nearly 13-15% of the country’s GDP versus countries like US and China only see a 7-8% cost of GDP being attributed to logistics. This is because the domestic logistics industry is highly fragmented and primarily includes small fleet carriers.

Which is a major drawback in the Indian logistics sector?

Some of the major drawbacks of the country’s logistics sector against other economies is that it is unorganised, capital intensive and lacks automation.

What are some of the future growth drivers in logistics sector?

Some of the crucial growth drivers that are slowly changing the dynamics of the logistics sector are machine learning, big data analytics, and artificial intelligence.

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