The shares of North Eastern Carrying Corporation Ltd. rose on Friday after the company won a contract from Tata Steel Ltd. The order is for transportation of steel products from Tata Steel's Sahibabad factory to other destinations.
The contract is for five years and may extend or be renewed for another year on mutual consent, according to the exchange filing on Thursday. NECC will transport the steel products through electric heavy vehicle, the logistics company added.
This, according to the company, is its first massive EV logistics contract.
New Delhi-based NECC is among the leading freight forwarding companies in India, providing services in neighboring countries Bhutan and Nepal as well. NECC is in the process of developing a state-of-the-art, 183,000 sq. ft. warehouse facility in Tauru, near Gurugram. The project is being fully funded from the company's reserves.
The facility will significantly lower the cost of first-mile and last-mile deliveries, particularly when using electric trucks.
North Eastern Carrying Corporation Share Price Rise
The shares of NECC rose as much as 14.09% to Rs 23.72 apiece. It pared gains to trade 9.52% higher at Rs 22.77 apiece, as of 9:44 a.m. This compares to a 0.29% decline in the NSE Nifty 50 Index.
It has risen 0.09% in the last 12 months and fallen 37.67% year-to-date. Total traded volume so far in the day stood at 9.5 times its 30-day average. The relative strength index was at 49.
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