The shares of the leading freight solution provider rose around 5 percent to Rs 31.75 per share after the company received an order from GAIL India for a value of Rs 52 crores.
At 12:17 p.m., North Eastern Carrying Corporation Ltd shares were trading at Rs 31.40 a share, up Rs 1.25 or 4.15 percent from the previous close price on the Exchange, and the company has a market capitalization of Rs 229 crores.
According to the company exchange filing, North Eastern Carrying Corporation received an order from Public Sector Undertaking Gas company from GAIL (India) Limited for transportation of polymer for a contract value of Rs. 52.48 crores for 3 years.
In FY 2022-23, the top five clients provided 46 percent of the company’s total revenues, up from 39 percent in FY 2021-2022. While full truckload has grown from 45.39 percent in the previous fiscal year 2021-22 to 51.71 percent in the current fiscal year 2022-23.
Recently, North Eastern Carrying Corporation Ltd signed a Memorandum of Understanding (Mou) with S.G Logistic Management Private Limited (Sglm) to acquire up to 20 percent of the company’s shares for an aggregate investment of up to 20 crore. To aid the company’s expansion and position in the logistics and transportation markets.
The company has over 187 branches spread across India and Nepal, as well as operational setups in Bhutan and Bangladesh.
In the current fiscal year, the company has received significant orders from clients such as Hygienic Research Institute Pvt. Ltd, Deepak Fasteners Limited, M/S L G Balakrishnan & Bros. Limited, and many more.
North Eastern Carrying Corporation shares have gained 60 percent in the last six months and 24 percent in a year.
The North Eastern Carrying Corporation Ltd’s revenue has declined by 6 percent yearly, from Rs 78 crores in Q2FY23 to Rs 73 crores in Q2FY24. Net Profit has reduced by 25 percent during the same period, from Rs 1.55 crores to Rs 1.15 crores.
North Eastern Carrying Corporation Ltd is engaged in the business of freight transportation services to bulk and retail customers, largely in the Full Truckload (FTL) segment.
In addition, the company also provides containerized movement of cargo, warehousing, packing, and moving and storage facilities.
Written by Omkar Chitnis
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