Multibagger penny stock under Rs 35: This micro-cap company receives new order worth Rs 52.48 crore from Ministry of Petroleum and Natural Gas!

The stock gave multibagger returns of 140 per cent from its 52-week low of Rs 13.20 per share and a whopping 250 per cent in 3 years.

North Eastern Carrying Corporation Ltd (NECC) inform you that we have received the Letter of Acceptance (LoA) from the Top Central Public Sector Undertaking under the Ministry of Petroleum and Natural Gas, Government of India, GAlL (India) Limited for transportation of polymer under a contract value of Rs 52.48 crore for a period of 3 years.

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 also converted partly paid-up equity shares into fully paid-up equity shares, raising Rs 39.75 crore. The remaining Rs 91.10 lakh will be collected from eligible shareholders. The converted shares will have the same rights as existing fully paid-up shares and will be merged with ISIN INE553C01016 upon completion of necessary procedures.

According to Quarterly Results, the net sales decreased by 39 per cent to Rs 76.04 crore, operating profit decreased by 50 per cent to Rs 2.38 crore and net profit decreased by 70 per cent to Rs 0.51 crore in Q2FY24 compared to Q2FY23. In its half-yearly results, the net sales decreased by 17 per cent to Rs 216.35 crore, operating profit decreased by 19 per cent to Rs 7.59 crore and net profit decreased by 39 per cent to Rs 1.83 crore in H1FY24 compared to H1FY23. While there were some decreases in financial metrics from Q2FY23 to Q2FY24, the company was able to maintain profitability in both periods. Additionally, the company's net sales and operating profit increased significantly from H1FY23 to H1FY24. This suggests that the company is on track for a strong financial year.

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 Rs 290 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.

Today, shares of NECC gained 1.19 per cent to Rs 30.60 per share with an intraday high of Rs 31.75 and an intraday low of Rs 30.60. The stock gave multibagger returns of 140 per cent from its 52-week low of Rs 13.20 per share and a whopping 250 per cent in 3 years.

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