Logistic Stock Hit 5% Upper Circuit After Winning Huge Order Deal From GAIL: Do You Own?

In the logistics industry, North Eastern Carrying Corporation Ltd. (NECC) is a small-cap business. On Monday, the BSE opened NECC's shares at Rs 32.06 apiece. During the closing session, the shares surged to reach the 5% upper circuit limit at Rs 32.11. Following the significant order transaction that GAIL gave the firm on Thursday, the shares wrapped up at Rs. 30.15, meaning that the stock had risen and gained 6.50% in only two sessions.

The company announced last week on Thursday that it had received the Letter of Acceptance (LoA) for the transportation of polymer under a contract valued at Rs. 52.48 crores for a three-year period from GAIL (India) Limited, the Top Central Public Sector Undertaking under the Ministry of Petroleum and Natural Gas, Government of India.

The firm and S.G. Logistic Management Private Limited recently signed a memorandum of agreement on December 4, 2023, pledging the company to invest up to Rs 20 crore and acquire up to 20% of the company's shares.
The company reported net revenues of Rs 73.84 crore for the September 2023 quarter, 5.8% less than Rs 78.38 crore for the same quarter in the prior year. From Rs. 1.55 crore in Q2FY23 to Rs. 1.15 crore in Q2FY24, its net profit dropped by 25.74%. EBITDA climbed 1.45% in the second quarter of the current fiscal to Rs. 4.91 crore from Rs. 4.84 crore in Q2FY23.

North Eastern Carrying Corporation has gained 33% in the last 1 year and on a YTD basis, the scrip has gained 44%. The scrip reached a 52-week-high of Rs 33.90 on (23/11/2023) and a 52-week-low of Rs 13.20 on (20/03/2023).