Logistic Stock Gains 11% To Hit 52W-High After Q2 Results: Do You Own?

Small-cap logistics firm North Eastern Carrying Corporation Ltd. (NECC) operates in the transport services industry. An Indian transport and logistics firm is North Eastern Carrying Corporation Limited. On Wednesday, the shares of NECC opened on the BSE at Rs 31.01 apiece and hit a fresh 52-week-high of Rs 32.85 in the morning deals logging a gain of 11.81%. While writing this copy the stock was trading 8.85% higher at Rs 31.98. The rally in the stock seen after the Q2 earnings of the company has been made public.

The spike in stock price was witnessed following the release of the company's Q2 results. The company reported net revenues of Rs 73.84 crore for the September 2023 quarter, 5.8% less than Rs 78.38 crore for the same quarter in the prior year. From Rs. 1.55 crore in Q2FY23 to Rs. 1.15 crore in Q2FY24, its net profit plunged by 25.74%. EBITDA improved by 1.45% in Q2FY24 to Rs. 4.91 crore from Rs. 4.84 crore in Q2FY23. North Eastern EPS plunged from Rs. 0.31 in September 2022 to Rs. 0.16 in September 2023.

The company has recently raised funds via rights issue as by 4,51,77,602 equity shares it raised Rs. 40,65,98,418. "The proceeds of rights issue amounting to Rs . 40,65,98,418 have been received on 21st July, 2023, An amount of Rs 4,75,00,000 is still there in the company's bank account & Rs. 15,00,00,000 has not yet utilized by the company," said North Eastern Carrying Corporation in a stock exchange filing.

The stock has gained 22.21% and 30% on a YTD basis. The scrip is currently trading at a PE of 44.19x, PB of 1.76x and ROE of 3.98 making the valuation expensive compared to the market average at the current market price.