Shares of logistic companies continued to be in focus at the bourses, rallying up to 14 on the BSE on Friday amid expectation of higher growth going forward.
Snowman Logistics, Navkar Corporation, Allcargo Logistics, Transport Corporation of India and Mahindra Logistics
were up in the range of 7 per cent to 14 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.58 per cent at 46,228 points, at 09:38 am.
Shares of Snowman Logistics
rose 14 per cent and hit a 52-week high of Rs 69.90 on the BSE. The stock has rallied 96 per cent in the past five weeks from the level of Rs 35.60, on November 6, 2020.
Meanwhile, Snowman Logistics
and SpiceJet on Thursday, December 10 signed a Memorandum of Understanding (MoU) for jointly engaging in storage, transportation and distribution of Covid-19 vaccines from various manufacturers, across India and internationally, in the required temperature-controlled zones.
As per the understanding, Snowman will handle the ground services which includes activities such as transportation to/from manufacturers, warehouses, airports and consumption points, packing, storage & warehousing, in the required temperature zones, while SpiceJet will provide the air connectivity for temperature controlled distribution of the Covid-19 vaccines across India as well as internationally, it said.
As a result, SpiceJet's stok also gained 6 per cent to Rs 106 on Friday. The stock has seen its share price more-than-double from Rs 50.50 on the BSE.
There has been a growing demand for single-point end-to-end cold chain services by large multinational companies. This has led to the emergence of organised private players such as Snowman Logistics.
Furthermore, to cater to the increasing demand for e-commerce logistics in the food and pharmaceutical sector, the company created a separate vertical in FY21.
There is an increasing demand for temperature-controlled services by the food industry, due to increasing urbanisation and changing consumer consumption patterns. India Ratings and Research (Ind-Ra) expects the company to benefit from increasing presence of quick service restaurants and demand for newer avenues such as pharma and healthcare sectors after the outbreak of Covid-19.