Logistics shares in focus; Gati, Snowman, Allcargo up over 5%
Patel Integrated, VRL Logistics, Transport Corporation and Sical Logistics were up more than 2% each
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Shares of logistics companies were in focus as they rallied by up to 16% on BSE during the noon deals in an otherwise subdued market on back of heavy volumes.
Gati, Snowman Logistics, Patel Integrated Logistics, Allcargo Logistics and Starlog Enterprises were up between 5% and 16%, while VRL Logistics, Transport Corporation of India and Sical Logistics were down 2%-4% on the BSE. On comparison, the S&P BSE Sensex was down 0.04% or 12 points at 28,802 at 12:11 pm.
According to analysts at ICICI Securities, the Indian logistics industry is highly fragmented with 67% of vehicle owners having fleets of less than five vehicles. Of the total express market of Rs 17,500 crore, unorganised share is estimated at around 50%
“The passage of Goods & Service Tax (GST), which is expected to be implemented by July 2017 would largely favour pan India organised players. In addition to the same, a direct correlation of around 2X to GDP and trade growth, buoyancy in the same would support the sector growth rates,” according to brokerage firm.
Among the individual stocks, Patel Integrated Logistics has rallied 14% to Rs 86 on BSE in intra-day trade. The trading volumes on the counter jumped by more than four-fold with a combined 428,265 shares changed hands on the BSE and NSE.
Gati surged 9% to Rs 134 on back of an over eight-fold jumped in trading volumes. Total 4.4 million shares changed hands on both the exchanges.
“Gati, being one of the largest organised surface logistics players will benefit from these tectonic policy changes. We believe the growth rates would be much higher post GST-stabilisation period,” analysts said in result update.
Gati, Snowman Logistics, Patel Integrated Logistics, Allcargo Logistics and Starlog Enterprises were up between 5% and 16%, while VRL Logistics, Transport Corporation of India and Sical Logistics were down 2%-4% on the BSE. On comparison, the S&P BSE Sensex was down 0.04% or 12 points at 28,802 at 12:11 pm.
According to analysts at ICICI Securities, the Indian logistics industry is highly fragmented with 67% of vehicle owners having fleets of less than five vehicles. Of the total express market of Rs 17,500 crore, unorganised share is estimated at around 50%
“The passage of Goods & Service Tax (GST), which is expected to be implemented by July 2017 would largely favour pan India organised players. In addition to the same, a direct correlation of around 2X to GDP and trade growth, buoyancy in the same would support the sector growth rates,” according to brokerage firm.
Among the individual stocks, Patel Integrated Logistics has rallied 14% to Rs 86 on BSE in intra-day trade. The trading volumes on the counter jumped by more than four-fold with a combined 428,265 shares changed hands on the BSE and NSE.
Gati surged 9% to Rs 134 on back of an over eight-fold jumped in trading volumes. Total 4.4 million shares changed hands on both the exchanges.
“Gati, being one of the largest organised surface logistics players will benefit from these tectonic policy changes. We believe the growth rates would be much higher post GST-stabilisation period,” analysts said in result update.
| Company | LATEST | PREV CLOSE | GAIN(%) |
| STARLOG ENTERP. | 119.75 | 103.60 | 15.59 |
| PATEL INTEGRATED | 82.50 | 75.50 | 9.27 |
| GATI | 131.35 | 123.20 | 6.62 |
| SNOWMAN LOGISTIC | 60.85 | 57.15 | 6.47 |
| ALLCARGO LOGIST. | 174.00 | 165.15 | 5.36 |
| NORTH EASTN.CAR. | 54.90 | 52.30 | 4.97 |
| BALURGHAT TECH | 2.43 | 2.32 | 4.74 |
| COASTAL ROADWAYS | 31.30 | 30.00 | 4.33 |
| TRANSPORT CORP. | 210.85 | 203.20 | 3.76 |
| CHART.LOGISTICS | 21.80 | 21.20 | 2.83 |
| SICAL LOGISTICS | 269.00 | 261.65 | 2.81 |
| VRL LOGISTICS | 295.80 | 290.00 | 2.00 |