InvestorQ : What are logistic stocks like Snowman, Navkar, Allcargo and Mahindra Logistics been seeing such strong positive action in the last few weeks?
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What are logistic stocks like Snowman, Navkar, Allcargo and Mahindra Logistics been seeing such strong positive action in the last few weeks?

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Juvina Maggie answered.
1 month ago
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If logistic companies are seeing their share prices surge, the one reason is the huge and humongous prospect distributing the vaccines across the length and breadth of India. The distribution is going to be a complex and arduous task and already airlines companies and logistics players are starting to tie up. Let us look at some star performers.

Shares of logistic companies rallied sharply by 10-15% on Friday on expectation of steep growth going forward. Logistic stocks like Snowman Logistics, Navkar Corporation, Allcargo Logistics, TCI and Mahindra Logistics were up between 8% nad 14% in a single day. This rally has been going on for some time with Snowman up nearly 100% in 5 weeks.

To give further grist to the story of logistic stocks, Snowman Logistics and SpiceJet signed a Memorandum of Understanding for joint distribution, storage, transportation and delivery of COVID-19 vaccines. It is a massive task coordinating the movement of vaccines from various manufacturers, across India to customers in managed temperatures.

Most logistic companies are looking at the COVID vaccine distribution as an opportunity to showcase their logistic management capabilities which can be then leveraged for getting a bigger market share and also mindshare of corporate customers. The increasing demand for e-commerce logistics in the food and pharmaceutical sector is another big opportunity.

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