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Logistics, a high growth sector: Karvy
Logistics sector is creating quite a buzz right now. Vikram Suryavanshi of Karvy Stock Broking believes that the logistics sector is set to develop even further.
Q: Can you put into perspective the buzz in the logistics sector right now and in terms of valuations, how do you see these stocks performing?
A: A lot of investments are going into the logistics sector. If you take the next two to three year horizon, we will more developments and even now most of the companies are turning to third party logistic operators to handle their logistic operations and the companies themselves are focusing on core businesses.
There is a lot of development particularly, in port and container sector. Major ports are handling around 74% of cargo right now. We will see capacity addition from around 660 million tonnes going to around 2,000 million tonnes by 2017. Particularly if we take the container movement, the highest growth is in container transportation, going ahead. Historically, growth has been around 15% to 17%, almost twice that of GDP growth. Most of the companies are looking into CFS, ICD facilities and apart from that, retail chains are coming up in a big way.
Q: What kind of stocks or shares do you have on you radar?
A: I would like to see companies mainly into container handling, like those having CFS, ICD facilities. Like Con Corp , Gateway Distri Pass , All Cargo , or to some extent, those that will help the retail chain like Gati .
Logistics sector is creating quite a buzz right now. 
