The links givenbeloware in response to Santosh Sinha’s query on Hitesh’s thread.
I had responded to Santosh’s query on Hitesh’s thread as below and hence I am posting some web links which should give good information on the potential of logistics sector.
Pasting Santosh’s query and discussion on Hitesh’s thread to ensure continuity, followed by the weblinks.
Just wanted to know if you have any info on what is the best proxy to play online retail boom going on in India. flipcart/snapdeal etc. I was wondering the best proxy wud be to play logistics companies enabling them them deliver good v fast. They also must be common to many players. Do you know any listed company in this space, which these companies are using as a preferred choice. This cud be the only way to participate in this growth story till flipcarts are listed.
This question is directed towards Hitesh but I am chipping in with my views as I feel strongly about logistics as a sector and have a strong conviction about it [however suggest you to develop your own conviction after reading and analysing available resources ].
I will reply to your post in the thread for logistics sector in detail. I would post some very good links. I suggest you spend some time going through this links, which I am sure would be very helpful and informative for you if you are interested in logistics space.
Personally I have created a logistics basket in my portfolio where in I hold Gati, TCI, Gateway Distriparks and Gujarat Pipavav. For me all these put together allow me to participate in the overall logistics sector (micro as well as macro plays). But please bear in mind that these stocks have run up a lot in the short term (I hold them since very low levels), therefore there may be short term volatility in them. Although I hold them with a 10 year perspective and believe thatit is a very long term story.
The e-commerce biz of companies like GATI and TCI is growing at >100% CAGR.
The revenue contribution is in high teens but slated to grow manifold in future.
GATI has all online retailers as its client except Flipkart.
Standalone for e-commerce biz GATIposted a topline of Rs 12 crore in FY12, Rs 25 crore in FY13, and expects to see a figure of Rs 70-75 crore for FY14.
Market size of express logistics segment during 2011-12 was estimated at Rs. 10,870 crores (about USD 1.8 billion). The industry is expected to grow at 17 per cent per annum compared to 11 per cent growth estimated for the overall logistics industry to Rs. 17,450 crores (about USD 2.9 billion) in the next three years.
ButI believethat Logistics (express delivery, e-commerce, cold storage chains, warehouses, ports, other import-export services, etc.,)will not only be about e-commerce but it will be a major beneficiary of the uptick in economic cycle and India’s rising contribution to world trade. If India is to be a $5 trillion economy by 2025 then I find this sector hard to ignore.
This space requires a lot of capital to grow and newer and smaller players are finding it very difficult to grow and are shutting shops due to lack of capital, which augurs well for companies like above which have established infrastructure on a pan India basis.
I will post links in the logistics thread which give lot of information on this spcae with respect to trying to assess the potential of this sector. The link for logistics thread is _http://www.valuepickr.com/forum/untested-worth-a-look/132771546#956739190_ Link: .#956739190
Apologies Hitesh to have chipped in with my views as the question was directed towards you. But thought of giving my views as I am invested in the sector.
http://www.dsij.in/article-details/articleid/9260/gati-delivering-express-returns.aspx Link: http://www.dsij.in/article-details/articleid/9260/gati-delivering-express-returns.aspx
http://www.industry20.com/detail/features/E-commerce-And-Logistics-A-Likely-Symbiosis-Or-An-Unlikely-Challenge-/8598 Link: http://www.industry20.com/detail/features/E-commerce-And-Logistics-A-Likely-Symbiosis-Or-An-Unlikely-Challenge-/8598
http://www.tcil.com/tcil/pdf/print/business_World_25_Jan_2014.pdf Link: http://www.tcil.com/tcil/pdf/print/business_World_25_Jan_2014.pdf
http://www.tcil.com/tcil/pdf/print/Logistics_Players_expect_to_grow_on_e-commerce_boom.pdf Link: http://www.tcil.com/tcil/pdf/print/Logistics_Players_expect_to_grow_on_e-commerce_boom.pdf
http://www.outlookbusiness.com/printarticle.aspx?289175 Link: http://www.outlookbusiness.com/printarticle.aspx?289175
http://www.tcil.com/tcil/recent-news.html Link: http://www.tcil.com/tcil/recent-news.html
http://www.dsij.in/article-details/articleid/9591/gati-delivers-another-express-quarter.aspx Link: http://www.dsij.in/article-details/articleid/9591/gati-delivers-another-express-quarter.aspx
http://www.dsij.in/article-details/articleid/10262/gati-operating-margins-expand-in-march-2014-quarter.aspx Link: http://www.dsij.in/article-details/articleid/10262/gati-operating-margins-expand-in-march-2014-quarter.aspx
http://articles.economictimes.indiatimes.com/2014-06-20/news/50738968_1_thirdparty-logistics-firms-fulfilment-centres-amazon-india Link: http://articles.economictimes.indiatimes.com/2014-06-20/news/50738968_1_thirdparty-logistics-firms-fulfilment-centres-amazon-india
http://articles.economictimes.indiatimes.com/2014-02-21/news/47559341_1_logistics-companies-third-party-logistics-firms-indian-logistics-industry Link: http://articles.economictimes.indiatimes.com/2014-02-21/news/47559341_1_logistics-companies-third-party-logistics-firms-indian-logistics-industry