India's logistics cos to benefit from new policy, price hikes- brokerages

VRL Logistics

29/12/2022 08:15

** At least two brokerages remain bullish on Indian
logistics sector, with Nirmal Bang citing new federal policy
aiming to cut costs and bring multi-mode connectivity  
    ** NB attributes optimism to expected healthy growth of
container rail volume, fall of transit time with dedicated
freight corridors being operational and privatisation of rail
logistics sector
    ** Brokerage views increased participation of private
players and digital adoption in cargo business as catalysts
    ** Maintains "buy" rating on Bluedart  BLDT.NS , Container
Corp of India  CCRI.NS  and Gateway Distriparks  GATW.NS  with
PTs of 10,810 rupees, 923 rupees and 89 rupees, respectively
   ** Motilal Oswal maintains "buy" rating for VRL Logistics
 VRLL.NS  with PT of 730 rupees
    ** MO analysts expect VRL's price hike to improve margins in
the fourth quarter of current fiscal; volume momentum to sustain
as aggressive branch addition continues
    ** Brokerage predicts VRL balancesheet to be "almost-debt
free" by fiscal 2024-end as co offloads bus business to focus on
less-than-truckload (LTL) segment
 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com; +91 9830427878))