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    Logistics sector set to maintain double-digit growth, says Pankaj Pandey, ICICIdirect

    Synopsis

    This is a huge industry, worth Rs 9.5 lakh crore, and you have various segments which are expected to sort of keep delivering double-digit kind of growth, Pandey told ET Now.While the business prospects are strong, some stocks such as Blue Dart Express are trading at high valuations, Pandey said, highlighting it as a reason for not tweaking the price target.

    Logistics sector set to maintain double-digit growth, says Pankaj Pandey, ICICIdirect
    The logistics sector can keep delivering double-digit growth given the business opportunities and presence of a large unorganized segment, says Pankaj Pandey, head of research at ICICIdirect.

    This is a huge industry, worth Rs 9.5 lakh crore, and you have various segments which are expected to sort of keep delivering double-digit kind of growth, Pandey told ET Now.

    While the business prospects are strong, some stocks such as Blue Dart Express are trading at high valuations, Pandey said, highlighting it as a reason for not tweaking the price target.

    While Blue Dart has taken price hikes and will be able to maintain its margins, valuations are not comforting, said Pandey, thus not recommending to buy the stock at current levels.

    Besides the logistics sector, Pandey is also bullish on the automobile ancillary industry given the demand prospects for both passenger vehicles and commercial vehicles.

    Mahindra CIE Automotive is one of the companies Pandey is bullish on as its planned capital investments in the domestic subsidiary will drive margin growth.

    Automotive Axles also looks attractive and can be a good play in the CV space, believes Pandey.

    “I think auto as an overall segment has a lot more room to perform from current levels,” he said.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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