As per the market experts, the Goods and Services Tax, will bring healthy growth prospects for the logistics sector.

The logistics sector in India is mostly unorganised in nature. The GST will strengthen the companies in organised sector as opposed to the unorganised sector, since the customers will be allowed to offset services tax under GST.

GST may bring tough times for the unorganised sector as they keep the prices lower by avoiding taxes.

But the organised companies that are listed on the stock exchanges, namely, VRL Logistics, Arshiya Limited, Allcargo, Chartered Logistics and many other logistics stocks are not showing any strong upward movement.

VRL Logistics and Allcargo Logistics have given 15.5% and -7.4% returns on a YTD basis, respectively. As per the market experts, there is still a chance of strong upward rally in the logistics stocks.