Stocks To Buy: Delhivery, Aegis Logistics among JPMorgan's top picks for 22% upside

Global brokerage firm JPMorgan has initiated coverage on India's logistics sector, with a preference towards the fastest-growing business-to-consumer (B2C) and business-to-business (B2B) express logistics segments, along with the oil and gas logistics segment.

The foreign brokerage said that India's B2C e-commerce logistics market is expected to outpace the broader industry, growing at a compounded annual growth rate (CAGR) of 16% until the financial year 2030.

Within the sector, Delhivery Ltd. and Aegis Logistics Ltd. have stood out as JPMorgan's top picks, with the brokerage assigning an 'Overweight' rating to both stocks.

The brokerage has initiated coverage on Delhivery with a price target of ₹575 per share, implying a potential upside of 22% from the stock's last closing price on Monday.

It estimates a CAGR of 58% in earnings before interest, tax, depreciation and amortisation (EBITDA) over FY25-FY28.

For Aegis Logistics, JPMorgan has a price target of ₹895 per share, which suggests a further upside of 19% from its last closing level.

The brokerage cited the company's ongoing capacity expansions, partnerships with marquee customers, strong return on capital employed (ROCE), and the presence of high entry barriers as the right ingredients for continued re-rating of the stock.

JPMorgan has also initiated coverage on TCI Express with a 'Neutral' rating and a price target of ₹750 per share.

The brokerage believes that while the worst phase is behind the company, the evolving industry landscape could pose challenges to earnings per share (EPS) growth.

On Container Corporation of India (Concor), JPMorgan has a 'Neutral' rating with a price target of ₹590 per share.

The brokerage said that risk-reward for Concor appears balanced at 3.1 times FY28 estimated enterprise value-to-sales (EV/Sales), based on a 10% sales CAGR over FY25-FY28.