Synopsis:
North Eastern Carrying Corporation Ltd rose 1.77 percent to Rs. 23 after bagging a five-year contract from Tata Steel for transporting steel via electric vehicles across Maharashtra.
The shares of this small logistics firm saw mild buying interest in the early trade after it announced receiving a long-term contract win from a large private sector steel manufacturer.
North Eastern Carrying Corporation Ltd a logistics services provider, currently has a market capitalization of Rs. 217.41 crore, and its shares opened at Rs. 23 and touched the same level intraday high, up 1.77 percent from the previous close at Rs. 22.60.
What’s the News?
North Eastern Carrying Corporation Ltd has secured a logistics contract from Tata Steel Limited (TSL) for the transportation of steel products from TSL’s Khopoli unit to Kalamboli, Panvel, Taloja, and other locations. The contract will run for five years and specifically mandates the use of electric vehicles (EVs) for the movement of goods.
In addition to this, the company’s Board of Directors is scheduled to meet on Thursday, August 7, 2025, to review and approve the unaudited financial results for the quarter ended June 30, 2025.
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Financial Snapshot
In FY25, NECC posted a net profit of Rs. 10 crore on a revenue base of Rs. 329 crore. The company reported a 3-year compounded profit growth of 37 percent and holds total assets worth Rs. 345 crore. It maintains Rs. 16 crore in cash equivalents and has total borrowings of Rs. 106 crore.
Return ratios remain moderate, with ROCE at 6.47 percent, ROE at 4.96 percent, and ROA at 3.10 percent. The company’s debt-to-equity ratio is comfortable at 0.48. With a stock price-to-earnings (PE) ratio of 21.2, NECC trades at a discount compared to the broader logistics industry’s PE of 29.5, indicating that the stock may be undervalued relative to its peers.
About the Company
Incorporated in 1984, North Eastern Carrying Corporation Ltd is engaged in the transportation business. The company provides services such as part and full truckload, over-dimensional cargo, and bulk movement of goods across India, Nepal, Bhutan, and Bangladesh. It also offers warehousing and customs clearance solutions.
Written By Manan Gangwar
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