Small Cap Stock Which Has Jumped 245% In 3-Yrs Receives LOA From GAIL For Rs 52.48 Cr Contract

The share price of a small-cap firm operating in the logistics sector, North Eastern Carrying Corporation Limited traded 3.34% higher at Rs 31.25 per share in the intrading trading on Friday after the company said that it has obtained a Letter of Acceptance from the Top Central Public Sector Undertaking Gas, Government of India, GAIL (India) Limited for transportation of polymer under a contract value of Rs. 52.48 crores for 3 years.

The company has a 52 Wk High and 52 Wk low of Rs 33.90 and Rs 13.20 respectively. NECCL shares have remained in focus this week due to one more reason concerning a proposal to acquire up to 20% stake in S.G. Logistic Management Private Limited (A group Company of SG group), for an aggregate investment size of up to 20 crore. In an exchange filing on November 4, the company said:

"We would like to inform you that the Company has entered into a Memorandum of understanding with S.G. Logistic Management Private Limited today i.e December 04, 2023, to invest up to 20 Crores in the same and acquire up to 20% of shares/ other securities therein."

The acquisition decision has been made for the purpose of trucking through Electric Vehicles.

NECCL Stock price performance:

NECCL shares have gained over 37% in the last three months, while the stock is up 56% in the last six months. In the last one year, the returns from the stock have increased 20.38%. The last 2-year and last 3-year returns from shares of NECCL are 50.10% and 245.44% respectively.

For the quarter ending September 30, 2023, the company recorded net sales of Rs 73.84 crore, down 5.8% compared to Rs 78.38 crore in the same quarter the previous year. The company's net profit fell 25.74% from Rs. 1.55 crore in Q2FY23 to Rs. 1.15 crore in Q2FY24. EBITDA jumped 1.45% from Rs. 4.84 crore in the same quarter of FY23 to Rs. 4.91 crore in the quarter under review.

About the company:

NECC Group offers a wide range of transport services in India, Nepal, and Bhutan. The services provided by the company include booking small parcels, Full Truck Load Consignments, and Project Consignments Over Dimensional Consignments (ODC). NECC also provides containerized movement of cargo, Warehousing, Packing and Moving, 3 PL, and storage facility all under one roof.