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NECC Stock Rises After Securing Tata Steel EV Contract

Transportation and Logistics

Business Honor
29 March, 2025

NECC's stock surges after winning Tata Steel contract for electric vehicle-based logistics services.

The stocks of North Eastern Carrying Corporation (NECC) climbed on March 28, 2025, after the news that the company had secured a big order from Tata Steel. Under the contract, the steel products from Tata Steel's factory in Sahibabad would be shipped to destinations using electric heavy vehicles (EVs), representing a milestone deal for NECC in the EV logistics segment.

The stock of the microcap firm opened almost 4% higher at Rs 21.60 and jumped by 14.09%, touching an intraday high of Rs 23.72. Around 1 PM, the stock was still up by 8%, trading at Rs 22.30, with about 6.5 lakh shares being traded. The bounce comes on the back of NECC's three-day consecutive slide, which reflected investor optimism following the news.

This is NECC's first gigantic electric vehicle logistics contract and marks a move toward greener, environmentally friendly logistics solutions. The five-year deal with an option to renew is a reflection of the increasing use of electric vehicles in the logistics industry, especially for transportation of industrial goods. The application of EVs for transporting steel products from Tata Steel will not only lower emissions but also be in consonance with the increasing focus on environmentally friendly transportation.

NECC, a leading participant in local and foreign goods movement, has been expanding its commercial and industrial goods transportation business in a big way. The company's market cap is Rs 216.74 crore, and its stocks have given reasonable returns in the recent past. Apart from this new EV-specific agreement, NECC has returned 44% over two years and 500% over five years in the recent past, reflecting the rising potential of the company in the transport and logistics industry.

The partnership with Tata Steel marks the emphasis on eco-friendly transportation and is also a milestone in NECC's strategic expansion as a logistics sector player.