Transportation and logistics is a great play on both. The India story is about manufacturing and consumption.

Valuations in this sector are at long term sector averages, which have been and will likely continue to remain at a premium to market, given the superior growth prospects and the history of growth-driven outperformance. With organized sector accounting for only 1.5% to total sector in India (vs 15% in the US)scope for exponential growth of organized sector leaders is promising. But this calls for massive development in the logistics space, which will be led by organized sector leaders. Government’s Gati Shakti program aims to reduce total logistics cost from 14% to 10% of GDP, which can give manufacturing sector a big competitive boost globally. With air traffic expected to grow very rapidly, leaders in this space look very promising.Ģ wheelers, passenger cars, auto components and aviation are structural decadal stories while commercial vehicles are cyclical stories which look promising now at this stage of the economic cycle. Search to make sure no one else has suggested it before. Near term global slowdown worries are overshadowed by the China+1 thrust.Īviation sector is consolidating after a value destroying decade, which augurs very well for the top 2 incumbents who have built dominant market share. Support Center Support Center Community Feedback Feature and Channel Requests Suggest features and new channels here Please do not suggest duplicates. India’s auto components industry has global scale, global cost competitiveness, is a preferred partner for the China+1 move and is an early beneficiary of the PLI program. Add in the new dynamic of connected cars, autonomous driving and data monetization potential, and you begin to understand the extent of disruption and new profit pools that are emerging in the personal mobility space. With fuel costs amounting to a staggering 60% of the lifetime cost of owning a car, one can imagine the significant scope for battery-electric-vehicles (BEVs) and all the related components.

Playon forum