SYNOPSIS:
J PMorgan’s top logistics picks, Aegis and Delhivery, offer up to 21 percent upside, driven by LPG expansion, customer partnerships, automation, and strong e-commerce growth in Tier II and III cities.
Global brokerage firm JPMorgan has initiated coverage on India’s logistics sector, expressing a clear preference for the rapidly expanding business-to-consumer (B2C) and business-to-business (B2B) express logistics segments, along with opportunities in oil and gas logistics.
In its latest report, the brokerage underscored the robust growth potential of India’s e-commerce logistics market, which is expected to expand at a CAGR of 16 percent through FY30. This growth is being fueled by rising customer adoption in Tier II and Tier III cities and improved efficiencies driven by technology. At the same time, labour shortages are accelerating investments in automation and infrastructure, enhancing sector-wide competitiveness. JP Morgan has picked the following two logistics stocks as top investment picks with potential upside of up to 21 percent:
Aegis Logistics Limited
With a market cap of Rs. 28,024 crores, the stock moved up by around 8.4 percent on BSE, rising to Rs. 819.25 on Tuesday. JP Morgan has initiated coverage on Aegis Logistics with an ‘overweight’ rating and a target price of Rs. 895 per share, representing a potential upside of nearly 12 percent from its current price levels.
The brokerage highlighted that the company’s oil & gas logistics potential, particularly in LPG import expansion, remains under-appreciated by the market. Key growth drivers for Aegis Logistics include strategic partnerships with marquee customers, strong return on capital employed (ROCE), and high entry barriers, which collectively support a favourable outlook. Additionally, JPMorgan noted that ongoing capacity expansions and robust customer relationships provide the foundation for continued re-rating of the stock.
The brokerage cited the company’s ongoing capacity expansions, partnerships with marquee customers, strong return on capital employed (ROCE), and the presence of high entry barriers as the right ingredients for continued re-rating of the stock.
Delhivery Limited
With a market cap of Rs. 35,443 crores, the stock moved up by around 2 percent on BSE, rising to Rs. 481 on Tuesday. JP Morgan has initiated coverage on Delhivery Limited with an ‘overweight’ rating and a target price of Rs. 575 per share, representing a potential upside of nearly 21 percent from its current price levels.
The brokerage expects strong EBITDA growth for Delhivery, forecasting an FY25-28 EBITDA CAGR of 58 percent. This growth is anticipated to be driven by economies of scale, easing operational headwinds, GST-related tailwinds, and enhanced cost optimisation measures.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
