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.
“The domestic logistics space is changing rapidly due to the introduction of multi-modal logistics, which improves rail or road infrastructure, raising demand for efficient or seamless transportation of goods. Thereby, it is the time for traditional logistic companies to evolve from their old methods, and invest in tech platforms. It is the only way to secure their market share in the coming years, or they will continue to grow at a single-digit g
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