Logistics Stocks

The logistics industry in India includes transportation, warehousing, and other value-added services like labelling, packaging and inventory management. The evolution of the logistics industry has transformed it from a traditional focus on transportation and storage to a specialised function covering end-to-end product planning, value-added services in last-mile delivery, predictive planning, and analytics.

This expansion is notably driven by the anticipated growth of India’s logistics sector. The industry employs 22 million individuals and serves as the backbone for various businesses.

In 2021, the Indian logistics sector was valued at US$ 250 billion, which is expected to increase up to US$ 380 billion by 2025, at a 10%-12% year-on-year growth rate. In addition, the government also plans to reduce the logistics and supply chain cost in the country to 10% from 13-14% of the GDP as per industry standards.

• Market demand: Assess the overall demand for logistics services, considering economic growth, e-commerce trends, and global trade dynamics.
• Technology adoption: Evaluate companies adopting technology for efficient supply chain management, including tracking systems, automation, and data analytics.
• Global supply chain trends: Stay informed about evolving global supply chain trends, such as reshoring, nearshoring, and the impact of geopolitical factors on logistics networks.
• Last-mile delivery solutions: Examine last-mile delivery capabilities, as this aspect is crucial, especially in the context of e-commerce growth and customer expectations for fast and reliable delivery.
• Regulatory environment: Be aware of regulatory challenges and compliance requirements in different regions, as these can significantly impact the logistics industry.
• Risk management: This is an important aspect of the logistics industry. Assess how logistics companies manage and mitigate risks, especially during disruptions in the supply chain, natural disasters, and geopolitical uncertainties.

Investing in logistics stocks via Angel One is easy. Simply follow these steps:

• Log in to your Angel One account.
• Click on the search icon and look for your desired logistics sector stock.
• Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
• To complete your transaction, click on the ‘Buy’ button.

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