Stocks to Buy: Siddharth Sedani picks 3 logistics stocks for high returns | Sid Ki Sip

Stocks to Buy: In a segment ‘SID Ki SIP’ aired on Zee Business with Managing Editor Anil Singhvi, expert, Siddharth Sedani picked three stocks for investors that can yield high returns. He said that the logistic sector will be the way ahead. 

According to him, the logistic industry is expected to be valued at $300-350 billion. He said that the new National Logistics Policy plans will reduce the logistic cost to 8%.

He said that the organised logistics sector in India is only 1.5% whereas in the USA it's 15% and in China is 7-10%. He further said that PM Gati Shakti Yojna could play a crucial role as it gives ease to the moving goods. Warehousing and digital systems are expected to be improved in this sector in near future. 

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Siddharth Sedani stocks on Zee Business- September 21

1. Container Corporation

Target- Rs 820, Return- 10%, Allocation- 40% 

Siddharth recommended Container Corporation as his first pick. He listed all the advantages of the company including its 60 terminals. He said, a deduction on the land leasing policy by the cabinet, from 6% to 1.5% will put the company on a higher advantage, also an extension of the lease period from 5 years to 35 years will be an advantage. Further, he said that till FY23 the company will expand its capacity. Year-on-year CAPEX of the company is Rs 750-800 crores. They have now permission to double stack, i.e. stacking the racks on the railway which is another advantage. Higher movement and bulk commodity exchange will be done by Container Corporation.

2. Transport Corporation of India (TCI): 

Target- Rs 920, Return- 17 %

Siddharth recommended TCI as his second pick. Talking about the company he said that the company supplies multi-model logistics with 12,000 trucks, six self-owned ships, 13 million sq ft warehouse. TCI’s CAPEX is Rs 2500 crores and it has strong fundamentals, strong cash flows, and margins that will be improved by management.

3. Mahindra Logistics 

Target- Rs 600, Returns-17%

Siddharth recommended Mahindra Logistics as his third pick. Talking about the company, he said that the company provides end-to-end logistics solutions, full warehousing from start to end and an asset light model. Mahindra Logistics also does many e-commerce deliveries by using Electric Vehicles (EVs). The company is also going to buy new warehouses by FY 23.