The Indian logistics industry plays a crucial role in the nation’s economy by enabling the transportation of goods and services across diverse sectors. Projections suggest that it has the potential to grow significantly, with an anticipated value of $350 billion by 2025.
Currently, there are 53 listed companies in the logistics sector in India. Here we have curated a list of fundamentally strong logistics stocks that have high ROCE of up to 37.7 percent.
VRL Logistics Ltd
VRL Logistics Limited (formerly Vijayanand Roadlines Ltd.) provides its transportation services for goods throughout 22 Indian states and 4 Union Territories, serving all major urban and rural areas. VRL has its dedicated offices in 553 towns and cities across the country. The company has a market capitalization of Rs. 5,903.25 crores.
On 7th November, shares of VRL Logistics Ltd were trading at Rs. 683.70 per share, the stock has delivered 12.26 percent returns in the last 1 year.
Looking at the profitability ratios, the company reported a return on equity (ROE) of 20.42 percent and a return on capital employed (ROCE) of 26.54 percent. The company is almost debt-free; it has a debt-to-equity ratio of 0.18 and a net profit margin of 6.2 percent.
Transport Corporation of India Ltd
Established in 1958, TCI has evolved into a prominent integrated supply chain and logistics solutions provider and a trailblazer in the field of cargo transportation in India. Capitalizing on its extensive infrastructure, TCI delivers smooth, multi-modal logistics solutions. The company has a market capitalization of Rs. 6,343.77 crores.
On 7th November shares of TCI Ltd were trading at Rs. 894.50 per share, the stock has delivered 30.59 percent returns in the last 1 year.
Looking at the profitability ratios, the company reported a return on equity (ROE) of 20.59 percent and a return on capital employed (ROCE) of 22.96 percent. The company has negligible debt, it has a debt-to-equity ratio of 0.04 and a net profit margin of 8.48 percent.
Tiger Logistics Ltd
Tiger Logistics India Ltd. operates as a third-party logistics service provider, offering a range of services that encompass international freight forwarding, supply chain management, project logistics, defense logistics, and cold chain logistics. The company has a market capitalization of Rs. 521.17 crores.
On 6th November shares of Tiger Logistics closed at Rs. 493.55 per share, the stock has delivered 118.42 percent returns in the last 1 year.
Looking at the profitability ratios, the company reported a return on equity (ROE) of 26.98 percent and a return on capital employed (ROCE) of 37.64 percent. The company is debt-free and has net profit margins of 5.36 percent.
Written by: Vinit Israni
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