Upper Circuit Alert: Heavy buying witnessed in this penny stock under Rs 35 following conversion of partly paid-up equity shares into fully paid-up equity shares!

The stock gave multibagger returns of 147.5 per cent from its 52-week low of Rs 13.20 per share and a whopping 290 per cent in 3 years.

On Tuesday, shares of North Eastern Carry Corporation Ltd hit a 5 per cent upper circuit to Rs 32.67 per share from its previous closing of Rs 31.12. The stock’s 52-week high is Rs 33.90 and its 52-week low is Rs 13.20. The shares of the company saw a spurt in volume by more than 1.05 times on BSE.

North Eastern Carrying Corporation Ltd, a leading provider of freight transportation services, recently announced a significant development that underscores its commitment to growth and financial stability. The company has successfully converted partly paid-up equity shares into fully paid-up equity shares, receiving Rs 39,74,88,375 towards the call money. The company has utilized Rs 4,05,00,000 for the construction and development of a warehouse and Rs 16,85,98,418 for general corporate purposes. The proceeds from the rights issue amounting to Rs 40,65,98,418 were received on July 21, 2023. As of now, Rs 4,75,00,000 is still available in the company's bank account and Rs 15,00,00,000 has not yet been used by the company. This move is expected to strengthen the company's financial position.

Despite facing challenges in the current economic climate, North Eastern Carrying Corporation Ltd has demonstrated resilience and adaptability. While the company's net sales and profits experienced a decline in Q2FY24 and H1FY24 compared to the corresponding periods in FY23, the company's overall financial performance remains stable. Notably, the company's annual results for FY23 showcased a commendable growth in net sales and net profit, highlighting its ability to navigate through economic fluctuations.

North Eastern Carrying Corporation Ltd boasts a strong market presence, particularly in the Full Truckload (FTL) segment, and offers a comprehensive suite of services, including warehousing and packing. The company's market capitalization of over Rs 300 crore.

With its robust financial performance, strong market presence, and experienced leadership, North Eastern Carrying Corporation Ltd is well-positioned to capitalize on emerging opportunities in the freight transportation sector. The company's recent conversion of partly paid-up equity shares into fully paid-up equity shares signals its commitment to financial stability and long-term growth.

The stock gave multibagger returns of 147.5 per cent from its 52-week low of Rs 13.20 per share and a whopping 290 per cent in 3 years. Investors should keep an eye on this stock.

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