ICICI Securities: India’s Logistics Sector Enjoys Distinct Advantage of Asset- Light Service Models 
An employee pulls a pallet laden with boxes during the overnight sort at the Blue Dart Express Ltd.(Photographer Dhiraj SinghBloomberg)

ICICI Securities: India’s Logistics Sector Enjoys Distinct Advantage of Asset- Light Service Models 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

We analyse the annual reports of three logistics service providers – Mahindra Logistics Ltd., Blue Dart Express Ltd. and VRL Logistics Ltd.

Mahindra Logistics remains an exciting story in search of execution, while Blue Dart is a story in need of business transformation. VRL Logistics appears as a tactical opportunity, as Covid-19 creates a crater out of its competition.

The cost increase and capex profile leaves more desired from Mahindra Logistics, Blue Dart and VRL Logistics.

Indian Accounting Standard (Ind-AS) 116 adoption is helping in operating leverage for all three. Yet, it appears TCI Express Ltd. scores higher on business sustainability, profitability, pricing power and business complexity. TCI Express continues to be our top pick in logistics service providers space.

Click on the attachment to read the full report:

ICICI Securites Logistics Sector Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.