India's Logistics Boom: These Five Stocks Will Benefit The Most, Says SEBI Analyst

India's logistics sector is emerging as a key enabler in the nation's journey toward a $5.5 trillion economy, supported by both short-term catalysts and long-term structural growth.

According to SEBI-registered analyst Cashvisory India, the industry is projected to touch $591 billion by FY27, with organized players nearly doubling their market share from 6% in FY22 to 12%–15% in FY27, growing at a strong CAGR of around 32%

In FY22, the sector expanded by 14% to reach $435 billion.

What's Driving This Growth?

The surge in e-commerce, coupled with post-pandemic recovery, has accelerated the need for faster, tech-enabled supply chains, the analyst noted.

Major infrastructure investments, including the 1,724 km Dedicated Freight Corridors and the development of 35 multi-modal logistics parks worth ₹50,000 crore, are further streamlining operations.

Long Term View

From a long-term perspective, logistics remains integral to manufacturing, trade, and overall GDP contribution, currently accounting for about 13% to 14%.

The sector remains road-dominated, with 66% of cargo moved by road, 31% by rail, and the remainder by air and shipping. However, multi-modal integration is improving efficiency, the analyst said.

Technology adoption, including GPS tracking, Radio-Frequency Identification (RFID), and e-way billing, is driving cost reductions and faster turnaround times, they added.

For investors, the near-term focus lies in infrastructure and digitalisation-led efficiency gains, while the long-term runway is supported by organised sector growth and rising trade volumes. However, risks remain from high logistics costs, infrastructure gaps, and regulatory challenges.

Stock Watch

Cashvisory has flagged VRL Logistics, Transport Corporation of India (TCI), Allcargo Logistics, Delhivery, and Container Corporation of India (CONCOR) as the stocks likely to benefit from India's logistics boom.

Around Thursday's close, these stocks were trading in the red, with VRL Logistics sliding over 2%. It has gained nearly 10% so far this year.

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