News

Foreign brokerage firm JP Morgan has initiated its coverage on key Indian logistics stocks - Delhivery, Aegis Logistics, Container Corporation of India (Concor) and TCI Express - with a positive outlook on the fastest growing B2C, B2B express and oil and gas segments.

JP Morgan expects India’s B2C e-commerce logistics market to grow at a compound annual growth rate (CAGR) of 16% through FY30, led by rising customer penetration in tier-2 and smaller cities along with tech-driven efficiencies.

“Labour shortages are making automation-related investments the need of the hour and success determinant. New age logistics players like Delhivery are displaying this awareness, cracking this code to better execution while raising the barriers to entry in an industry known for scale barriers,” the brokerage firm said in a note.

It added that India’s oil and gas logistics segment remains an underappreciated growth story, with rapidly expanding LPG imports and capacity additions at ports presenting a multi-year opportunity for Aegis Logistics.

JP Morgan highlighted that investors have tended to reward logistics firms demonstrating strong revenue growth potential, while earnings misses have often led to sharp de-ratings. Reflecting this view, the brokerage has initiated coverage on Delhivery and Aegis Logistics with an Overweight rating, while assigning a Neutral rating on Concor and TCI Express.

JP Morgan initiated coverage on Delhivery shares with an ‘Overweight’ rating and a target price of ₹575 apiece for September 2026. Delhivery share price target is based on 29x one-year forward EV/EBITDA, which is slightly above the 10-year mean (26x) of listed express logistics peers - Blue Dart and TCI Express.

Given Delhivery’s revenue growth outperformance and strong outlook, JP Morgan believes a premium is warranted to the average valuation multiples of its peers. The implied P/E multiple on its target price is 47x and the implied EV/Sales is 3x.

The brokerage firm initiates coverage on TCI Express with a Neutral rating and a target price of ₹750 apiece. JP Morgan forecasts ~14% EPS growth between FY25-28E, however FY28E EPS is still likely to be below the FY23 peak. Hence, it believes the risk-reward looks balanced at an FY27E P/E of 24x. It could turn positive on the stock if P/E multiples fall well below -1SD (