Why Is JP Morgan Bullish On Delhivery And Aegis Logistics?
JP Morgan has initiated coverage on India’s logistics sector with a positive outlook on high-growth players. The brokerage highlights structural tailwinds in e-commerce logistics and energy infrastructure while maintaining caution on select mature players.
Which Stocks Are The Top Picks?
JP Morgan’s top Overweight-rated stocks include:
• Delhivery – Target ₹575
• Aegis Logistics – Target ₹895
Neutral ratings have been assigned to:
• Container Corporation (Concor) – Target ₹590
• TCI Express – Target ₹750
What Are The Key Sector Insights?
JP Morgan favours the fastest-growing segments within logistics, namely B2C/B2B express delivery and oil & gas logistics.
• B2C e-commerce logistics is expected to grow at a 16% CAGR through FY30E, led by penetration into tier-2+ cities and improved tech efficiencies.
• Labour shortages make automation essential, providing an edge to new-age players like Delhivery that leverage advanced execution models.
• Aegis Logistics stands to benefit from increasing LPG imports and port capacity expansion, offering multi-year growth potential.
How Do Valuations Play A Role?
JP Morgan notes that the market continues to reward strong revenue growth within the logistics space, while earnings misses trigger sharp de-ratings. Concor and TCI Express carry Neutral ratings as valuations already reflect their expected growth trajectory.
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Investor Takeaway
JP Morgan’s coverage underscores structural opportunities in India’s logistics sector. Delhivery and Aegis Logistics are its top picks, with growth backed by e-commerce penetration and rising LPG imports. Investors should remain mindful of valuation sensitivity, as earnings delivery remains a key driver of stock performance.
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Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services