Shares of North Eastern Carrying Corporation Ltd (NECC) experienced a significant surge, reaching Rs 32.60 per share, up 5% from its previous closing of Rs 31.05. The stock’s 52-week high is Rs 37.40, while the 52-week low stands at Rs 13.15.
NECC is a company primarily engaged in providing freight transportation services, specializing in the Full Truckload (FTL) segment, along with additional services including warehousing and packing. With a market cap exceeding Rs 300 crore, NECC has established itself as a key player in the logistics industry.
The recent upward movement in NECC’s stock price can be attributed to their stellar quarterly results (Q3FY24) and nine-month results (9MFY24). In Q3FY24, net sales increased by an impressive 15.9% to Rs 88.59 crore, while net profit soared by an astounding 118.2% to Rs 25.18 crore, as compared to Q2FY24. Moreover, in 9MFY24, net sales witnessed a growth of 4.6% to Rs 243.27 crore, and net profit rose by 11% to Rs 51.58 crore, in comparison to the same period last year. Furthermore, NECC also achieved remarkable annual results, as net sales surged by 22.40% to Rs 306 crore, and net profit witnessed a whopping 50% increase to Rs 6 crore in FY23 over FY22.
In a strategic move, NECC has secured a lucrative 3-year contract worth Rs 52.48 crore for polymer transportation from GAIL (India) Limited. This collaboration serves to strengthen NECC’s foothold in the logistics sector. Furthermore, NECC has partnered with S.G. Logistic Management Private Limited (SGL) to venture into the electric vehicle (EV) trucking business. With a Rs 20 crore investment and a 20% stake acquisition in SGL, NECC aims to establish a sustainable and eco-friendly transportation network by utilizing electric vehicles. This initiative not only promotes EV adoption in India but also presents NECC with new opportunities for growth and expansion.
NECC’s stock has proven to be a lucrative investment, delivering multibagger returns of 148% from its 52-week low of Rs 13.15 per share and an impressive 275% growth over a span of 3 years. However, readers are advised that this article is for informational purposes only and should not be considered as investment advice.
FAQ:
1. What is North Eastern Carrying Corporation Ltd (NECC)?
NECC is a company primarily engaged in providing freight transportation services, specializing in the Full Truckload (FTL) segment, along with additional services including warehousing and packing.
2. What is the current stock price of NECC?
The current stock price of NECC is Rs 32.60 per share, which is up 5% from its previous closing price of Rs 31.05.
3. What are the key financial results of NECC?
In Q3FY24, net sales increased by 15.9% to Rs 88.59 crore, and net profit soared by 118.2% to Rs 25.18 crore compared to the previous quarter. In 9MFY24, net sales grew by 4.6% to Rs 243.27 crore, and net profit rose by 11% to Rs 51.58 crore compared to the same period last year. Additionally, in FY23, net sales surged by 22.40% to Rs 306 crore, and net profit witnessed a 50% increase to Rs 6 crore compared to FY22.
4. What recent developments have occurred in NECC?
NECC has secured a 3-year contract worth Rs 52.48 crore for polymer transportation from GAIL (India) Limited. They have also partnered with S.G. Logistic Management Private Limited (SGL) to venture into the electric vehicle (EV) trucking business, investing Rs 20 crore and acquiring a 20% stake in SGL.
5. What are the recent stock performance and investment returns of NECC?
NECC’s stock has experienced a significant surge, with a 275% growth over a span of 3 years and multibagger returns of 148% from its 52-week low of Rs 13.15 per share.
Definitions:
1. Full Truckload (FTL) – A transportation mode where the entire truck space is booked by a single shipper to transport their goods without any sharing of space with other shippers.
2. Market cap – Short for market capitalization, it refers to the total value of a company’s outstanding shares of stock, calculated by multiplying the stock price by the number of shares.
3. Logistics industry – The industry involved in the management, organization, and transportation of goods and resources from one location to another.
Related links:
– NECC Official Website
– GAIL (India) Limited
– S.G. Logistic Management Private Limited (SGL)
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