Penny stock skyrockets 15% after receiving order from Tata Steel for transportation of steel products

This transportation stock is in focus after it jumped upto 15 percent following the report of the company receiving a contract from Tata Steel. This is also the first major EV logistics order for the company.

Share Price Movement

With a market capitalization of Rs. 220 Crore, the stock of North Eastern Carrying Corporation opened at Rs. 23.99, up 15.55 percent from yesterday’s close, and the opening was also the day high for the stock.

Contract Update

The company has been awarded a contract from Tata Steel Limited (TSL), which is also the company’s first massive EV logistics order. The order is for the transportation of Steel products (Coils/Sheets/Tubes) from Sahibabad, Uttar Pradesh, to various other destinations.

The transportation of the goods will be done via EVs (Electric Heavy Vehicles) for the period of 5 years. The company also stated that the contract may be renewed for a further period of one year on mutual consent.  

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Financial Highlights

The company reported a 5.30 percent YoY decrease in revenue from Rs. 85.59 Crore in Q3FY24 to Rs. 81.05 Crore in Q3FY25. On a QoQ basis, the company also reported a decrease of 1.08 percent in revenue from Rs. 81.94 Crore in the previous quarter.

Their Net profit saw a decrease of 23.01 percent YoY from Rs. 2.52 Crore to Rs. 1.94 Crore for the same period. On a QoQ basis, the company reported a decrease of 32.40 percent in Net profit from Rs. 2.87 Crore in the previous quarter.

About the Company

North Eastern Carrying Corporation Limited (NECC) is an Indian transport and logistics company established in 1984 and headquartered in Delhi. The company offers a comprehensive range of services, including goods and small parcel transportation, full truckload (FTL), bulk movements, over-dimensional consignments (ODC), and warehousing and third-party logistics (3PL) solutions.

Written By Abhishek Das

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