Logistic players have seen a sharp correction at the bourses over the past six months as intense competition from new-age-tech startups, higher freight rates, and weak macros dented listed players' growth outlook. Analysts warn that the emergence of tech-based startups could weigh on organised players' profit-pool, and can potentially erode their market share. Thus, a stock-specific strategy would be prudent at this juncture with focus on companies that are rapidly innovating and investing in technology.
These stocks are overvalued and, therefore, one should not adopt a buy and hold strategy.
The change in the latest Budget will impact the sale and rent of SEZ units of companies like Adani Port, which has large SEZs in Mundra.
Experts caution that the rally in these stocks may fizzle out soon, as the overall market sentiment still remains weak.
Real test of the rally in this segment will be the upcoming result season.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries
Ajit Mishra, vice president, Research, Religare Broking, answers readers' queries on stocks they own or want to buy.
'GST will bring in much needed transparency and higher investments in the coming years and we hope that a few percentage points to India's GDP.'
ICICI Bank extended yesterday gains, rising 10% in two trading sessions
Ajit Mishra, vice president, Research, Religare Broking, answers your queries