Mahindra Logistics, Tiger Logistics and Snowman Logistics were up in the range of 8% to 9% on BSE
SI Reporter | Mumbai Last Updated at January 12, 2018 15:02 IST
Shares of logistics companies were in focus with trading higher by up to 10% in intra-day trade in otherwise range-bound market. Mahindra Logistics, Tiger Logistics and Snowman Logistics up in the range of 8% to 9%, while Future Supply Chain Solutions, Patel Integrated Logistics, Blue Dart Express, Gati and Gateway Distriparks up between 1% and 3% on BSE. On comparison, the S&P BSE Sensex was up 0.13% at 34,550 points at 02:53 PM. Snowman Logistics hits a 52-week high of Rs 71, up 11% on BSE in intra-day trade on back of nearly two-fold jump in trading volumes. A combined 15.98 million shares have changed hands on the BSE and NSE so far. In past one week, between January 5 and January 11, Nortwest Venture Partners VII-A Mauritius had sold 8.64 million shares representing 5.17% stake of Snowman Logistics for Rs 536 million.
The name of the buyers not ascertained immediately. Future Supply Solutions and Mahindra Logistics were hit their highest level since listing on the bourses. According to IIFL Wealth Management, the government’s infra development focus is expected to transform overall logistics sector prospects going forward. Timely development of key projects like the Dedicated Freight Corridor (DFC) and Sagarmala should usher in a new era of the cost-effective multi-modal transport. Also, the hub-and-spoke model is expected to proliferate post Goods and Services Tax (GST) rollout, thereby opening a plethora of outsourcing opportunities to organized logistics players, the brokerage firm said in a note. It believe 3PL (third part logistics) companies in the organized space would benefit significantly given their end-to-end services capabilities via supply chain design and consultancy, access to multi-modal transportation services, and robust infrastructure services. While there have been fluctuations in the economy and freight demand due to GST implementation, the impact of the same would be temporary and would be corrected over the near term. The logistics industry would continue to benefit from economic recovery and revival in industrial output, while supply side factors like improvement in logistics infrastructure and emergence of logistics startups would offer further impetus to growth, ICRA said in a recent report.
First Published: Fri, January 12 2018. 14:54 IST