Logistics Stocks Have Surged Up To 96% Since Positive Vaccine Trial News

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Business

oi-Olga Robert

By Staff

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Published: Saturday, December 12, 2020, 18:55 [IST]

Shares of logistics companies continue to remain in focus about 5 weeks since Pfizer’s first announcement on success in vaccine trials.

The need for efficient logistics services to transport the vaccine have raised the expectation of higher growth in earnings going forward.

Snowman Logistics, Navkar Corporation, Allcargo Logistics, SpiceJet, Transport Corporation of India and Mahindra Logistics have gained 6 to 14% on Friday.

Logistics Stocks Have Surged Up To 96% Since Positive Vaccine Trial News

Snowman Logistics rose to its 52-week of Rs 69.90 on Friday after rallying 96% in the past 5 weeks from Rs 35.60 on 6 November. The cold-chain company and SpiceJet signed a Memorandum of Understanding (MoU) on 10 December 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.

Apart from vaccine transport, the increasing demand for e-commerce logistics in the apparel, food and pharmaceutical sector has also raised the expectation of growth in their earnings.

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