Why should you invest in this smallcase?
Indian logistics sector has seen annual growth rates of approximately 15% over the last few years, which is expected to continue growing at a rapid pace.
- Generally, the logistics sector grows at 1.5x times the GDP and India is set to be the fastest growing economy among major world economies
- Government has been focusing on the transportation sector with an improve infrastructure facilities
- Rs 1.48 lakh crore was allotted for railway capital expenditure in Budget 2018, most of which will be spent on capacity expansion
- Airport upgradation, improved port connectivity, development of logistics parks and accelerated pace of road construction are also focal points
- Implementation of GST, which will lead to supply chain decisions on the basis of cost efficiency, will positively affect the sector
- E-commerce sector is growing at a rate of over 60% a year and logistics is an integral part of e-commerce businesses
- Currently, the logistics expenditure of e-commerce companies stands at around 10% and the sector is expected to grow along with the e-commerce sector
This smallcase consists of companies that will gain from the boost in growth of the logistics sector.
Past Performance vs
Mar 3, 2014
Past performance doesn't guarantee future returns & is inclusive of all rebalances. Download chart