Heavy buying multibagger penny stock under Rs 35: Bags order from Ministry of Petroleum & Natural Gas; stock hit upper circuit on February 02

The stock gave multibagger returns of 144 per cent from its 52-week low of Rs 13.20 per share and a whopping 255 per cent in 3 years.

Today, shares of North Eastern Carrying Corporation Ltd (NECC) hit 5 per cent to Rs 32.36 per share from its previous closing of Rs 30.82. The stock’s 52-week high is Rs 37.15 while its 52-week low is Rs 13.20.

North Eastern Carrying Corporation Ltd primarily provides freight transportation services to bulk and retail customers, particularly in the Full Truckload (FTL) segment, along with other services like warehousing and packing. The company has a market cap of over Rs 300 crore. According to annual results, the net sales increased by 22.40 per cent to Rs 306 crore and the net profit increased by 50 per cent to Rs 6 crore in FY23 over FY22.

North Eastern Carrying Corporation Ltd (NECC) has secured a 3-year contract worth Rs 52.48 crore from GAIL (India) Limited, a leading public sector undertaking under the Ministry of Petroleum and Natural Gas, for the transportation of polymer.

Earlier, NECC has partnered with S.G. Logistic Management Private Limited (SGL) to venture into electric vehicle (EV) trucking. NECC will invest up to Rs 20 crore and acquire up to a 20 per cent stake in SGL. This collaboration aims to establish a sustainable and eco-friendly transportation network using electric vehicles. The partnership will further strengthen NECC's presence in the logistics sector and contribute to the adoption of EVs in India.

The company's financial performance showed mixed results in the first half of FY24. While there were significant decreases in net sales, operating profit, and net profit from Q2FY23 to Q2FY24 [ranging from (39 per cent to (70 per cent)], the company was able to maintain profitability in both quarters. Looking at the half-yearly results, there were smaller decreases compared to Q2FY24, with net sales and operating profit down by 17 per cent and 19 per cent respectively. However, net profit saw a larger decrease of 39 per cent. Despite these decreases, it's important to note that the company's net sales and operating profit increased significantly year-over-year in H1FY24, growing by 18 per cent and 21 per cent respectively.

The shares of the company saw a spurt in volume by more than 3.5 times on BSE. The stock gave multibagger returns of 144 per cent from its 52-week low of Rs 13.20 per share and a whopping 255 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.