India’s logistics sector is witnessing remarkable growth, with the industry set to reach an impressive $357 billion in revenue by 2030. The sector is currently valued at approximately $228 billion, with a projected compound annual growth rate (CAGR) of 7.7% from 2025 to 2030.
This surge will place India firmly in the spotlight, accounting for 5.8% of the global logistics market in 2024, cementing its position as one of the key players in the world’s logistics ecosystem. This growth trajectory is powered by significant developments in India’s infrastructure and the increasing demand for logistics services due to rapid urbanisation, e-commerce expansion, and the country’s evolving industrial landscape. Among the prominent companies poised to benefit from this rise is Container Corporation of India Ltd. (CONCOR), a Navratna enterprise engaged in the handling, tradal logistics, CONCOR plays a pivotal role in improving supply chain efficiency by offering rail and road container transport, cold-chain solutions, and bonded warehousing.
The company’s diverse portfolio includes operations in dry ports, freight stations, and air cargo complexes. With a market capitalisation of Rs 43,068 crores, CONCOR has had its share of fluctuations. The company hit a 52-week high of Rs 1,180 per share, but currently trades at Rs 706, reflecting a 40% drop. Despite this, it boasts a robust return on equity (ROE) of 10.9% and a return on capital employed (ROCE) of 13.9%, positioning it as a strong contender in the logistics space. However, its price-to-earnings (PE) ratio of 32.2x remains higher than the industry average of 25.30x, suggesting that the stock might be slightly overvalued in comparison to peers. Another key player in India’s logistics expansion is Delhivery Limited, which has emerged as a leader in supply chain solutions catering to diverse sectors such as e-commerce, FMCG, automotive, and consumer electronics. With services ranging from express parcel delivery to full truckload freight, Delhivery’s extensive capabilities have made it a crucial partner for businesses across India.
However, despite its large market cap of Rs 19,720 crores, the company’s financial performance has been under scrutiny. It posted a 52-week high of Rs 478 per share but has since experienced a 45% decline, trading at Rs 263.55 per share. Delhivery currently faces negative returns on equity and capital employed, at -2.94% and -1.73%, respectively. The company’s PE ratio of 481x is drastically higher than the industry average, signalling potential caution for investors. Meanwhile, Blue Dart Express Ltd., a subsidiary of DHL Express, continues to lead the express courier sector in India with a market cap of Rs 14,042 crores. The company’s logistics offerings include time-definite and day-definite delivery services, and it enjoys a strong presence in both domestic and international markets. Despite the challenges in the broader market, Blue Dart remains a significant player, with an ROE of 22.7% and an ROCE of 19.2%. It’s currently trading at Rs 5,907 per share, down 37% from its 52-week high of Rs 9,483.85. With a PE ratio of 51x, which is higher than the industry average of 42.38x, Blue Dart has solid growth prospects, though its high valuation might be a deterrent for some investors.
Lastly, Transport Corporation of India Ltd. (TCI) is another logistics company capitalising on the growing demand for supply chain solutions. With a market capitalisation of Rs 8,750 crores, TCI offers end-to-end logistics services, including full truckload and project heavy haul transportation. The company operates through various divisions such as Freight, Supply Chain Solutions, Seaways, and Energy, providing multimodal transport and warehousing management. TCI’s stock has also faced some pressure, down by 14% from its 52-week high of Rs 1,309, and currently trading at Rs 1,127. The company maintains a solid ROE and ROCE of 19% and 19.09%, respectively, and a relatively lower PE ratio of 21.7x. As India’s logistics market continues its upward trajectory, it presents a significant opportunity for growth, not only for the country’s infrastructure but also for investors looking to capitalise on the expanding sector. While some stocks, such as Delhivery, may seem highly valued, companies like Container Corporation, Blue Dart, and Transport Corporation of India offer promising long-term growth potential. With a government focus on improving logistics infrastructure and streamlining supply chain processes, the sector’s growth seems poised to accelerate, making it an exciting space for both business and investment.
In conclusion, as India drives toward its ambitious $357 billion target for the logistics sector by 2030, the companies leading the charge will play a critical role in reshaping India’s industrial and economic future. Investors must navigate the sector’s fluctuating stock valuations while keeping an eye on the long-term gains presented by infrastructure advancements and market expansion.
