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Our Bureau

Kolkata , Nov. 16

THE stock market's focus is of late been on logistics companies, which are direct beneficiaries of the boom in the infrastructure spending. As more and more private enterprises are participating in the development of roadways and port infrastructure development, stocks of such companies are getting added attention.

Aegis Logistics, Container Corporation, GATI Ltd, Gateway Distriparks, Patel on Board, Patel Roadways, and Transport Corporation have been speeding fast on the value avenue.

According to Mr Devarsh Vakil of Anagram Stockbroking, there has been substantial amount of private investments in major Indian ports such as Jawaharlal Nehru Port Trust (JNPT), Mundhra, Pipavav and Chennai. Growth potential of export-import business in the country is immense. As the economy is set to grow at over 7 per cent in the coming years, the international trade is expected to grow at 15 per cent CAGR.

Many companies, which operate in different niches within logistics field, are likely to be the beneficiaries of improving infrastructural facilities.

Third party logistics/courier services companies such as GATI and Blue Dart; port-based logistic services such as container freight station (CFS) and inland container depot (ICD) facilities companies Container Corporation of India, Gateway Distriparks and Balmer Lawrie & Company are witnessing increased investors interest.

The P/E for these counters also surged ahead. For example, based on the trailing 12-month EPS, Gateway Distripark is fetching a P/E of 36, while based on the expected earnings for 2005-06 its P/E stands at 26.

According to a fund manager, most of them, however, seemed to have raced ahead of their current fundamentals and have begun factoring in the growth heavily.

In terms of return on capital employed on its logistics business, the PSU Balmer Lawrie stands out, said Mr C.V. Desai of CD Equisearch.

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