Shares of logistics companies remained focused on exchanges, climbing as high as 14 on the BSE on Friday amid expectations of further growth in the future.
Snowman Logistics, Navkar Corporation, Allcargo Logistics, Transport Corporation of India and Mahindra Logistics increased between 7% and 14% on the BSE. By comparison, the S&P BSE Sensex was up 0.58 percent to 46,228 points, as of 09:38 am.
Shares of Snowman Logistics rose 14 percent and hit a 52-week high of Rs 69.90 on the BSE. The stock has recovered 96 percent in the past five weeks from the Rs 35.60 level on November 6, 2020.
Meanwhile, Snowman Logistics and SpiceJet signed a Memorandum of Understanding (MoU) on Thursday, December 10, to jointly participate in the storage, transportation, and distribution of Covid-19 vaccines from various manufacturers, in India and internationally, in temperature-controlled areas. required.
According to the understanding, Snowman will handle ground services that include activities such as transportation to and from manufacturers, warehouses, airports and points of consumption, packaging, warehousing and storage, in the required temperature zones, while SpiceJet will provide the connectivity. air for temperature. Controlled distribution of Covid-19 vaccines in India, as well as internationally, he said.
As a result, SpiceJet’s Stok also gained 6 percent to Rs 106 on Friday. The stock has seen its share price more than double Rs 50.50 on the BSE.
There has been a growing demand for end-to-end single point cold chain services from large multinational companies. This has led to the emergence of organized private actors like Snowman Logistics. Additionally, to meet the growing demand for e-commerce logistics in the food and pharmaceutical sector, the company created a separate vertical in fiscal year 21.
There is a growing demand for temperature controlled services by the food industry, due to increasing urbanization and changes in consumer consumption patterns. India Ratings and Research (Ind-Ra) expects the company to benefit from the growing presence of quick-service restaurants and the demand for new avenues such as the pharmaceutical and healthcare sectors after the Covid-19 outbreak.