Logistics stocks higher on GST hopes; Allcargo Logistics, Gati, Sical Logistics gain

Dated 16th November, 2015

The shares of the logistics companies closed higher on hopes that the GST Bill will see the light of day.

Stocks of Allcargo Logistics ended higher at 4.47% at Rs 376.50. VRL LogisticsLimited was up 8.32% at Rs 420.35. Gati was up 6.03 at Rs 143.35. Sical Logistics rose 3.27% to Rs 138.80. Snowman Logistics was up 6.65% at Rs 88.95 and Patel Logistics Ltd rose 6.25% at Rs 96.10.

Under the GST amendment, tax will be levied on stock transfers and full credit will be available on interstate transactions. Thus the warehousing locations will no longer be dependent on the tax considerations and will be decided on the company strategy and logistic requirements, says a report.