Zinka Logistics set to enter listed space: Will it in any way spur growth for the sector?

Barring a few names such as Aegis Logistics and Navkar Corp, logistics stocks are trading with a negative return in the last one year. Here's a quick take on the return fetched by companies from the space:

As what can be seen most of the companies from the space are trading at high valuaiton as has been the concern across-the-board after sharp rise in Indian equities with soothening in some of the pockets now after sharp corrrection.

So, how will Zinka Logistics or Blackbuck IPO bode well for the sector?

Zinka Logistics that has opened its Rs 1,114.72 crore public offer for garnering money for funding cost for expenditure towards product development, sales and marketing and also for investment in Blackbuck Finserve has so far garnered a weak response.

Nevertheless, if at all will its entry into the segment will rekindle the lost vigour in the sector is questionable.

Should you bid for Zinka Logistics IPO open until November 18. Check here.

Trivesh D, COO, Tradejini on the sector's performance added that the logistics sector has been under pressure over the past three months, with stock corrections ranging from 20 per cent to 30 per cent. Despite this downturn, the long-term outlook remains promising, adds the analyst

Recent policy initiatives, like the National Logistics Policy (NLP) and the PM GatiShakti National Master Plan, are laying the groundwork for major improvements in infrastructure, connectivity, and regulations. These efforts are expected to make logistics more efficient and cost-effective, supporting the sector’s projected growth from around Rs 26 lakh crore in 2024 to Rs 40 lakh crore by 2029.

Even though logistics stocks haven’t attracted much attention recently, lower P/E ratios and innovative companies like Zinka Logistics are adding potential to the space. 

As technology continues to integrate into logistics making it a digital transformation, there could be significant opportunities for growth, making it an interesting space for investors looking for long term value.