North Eastern Carrying Corporation Receives 'Hold' Rating from MarketsMOJO, Technical Indicators Suggest Bullish Trend

North Eastern Carrying Corporation, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO on January 8, 2024. This upgrade is based on various technical indicators that suggest a bullish trend for the stock.
Since January 5, 2024, the stock has shown a positive trend, generating a return of 1.57%. This is supported by factors such as MACD, Bollinger Band, KST, and OBV, which all indicate a bullish sentiment for the stock.

In terms of valuation, the company has an attractive ROCE of 7.3 and a low enterprise value to capital employed ratio of 1.6. Additionally, the stock is currently trading at a discount compared to its historical valuations, making it an attractive option for investors.

However, the company does have some weak fundamental strengths. Over the last 5 years, it has shown a negative CAGR growth in net sales of -1.58%. It also has a high debt to EBITDA ratio of 5.93, indicating a low ability to service debt. Furthermore, the company's return on equity has been low at 4.68%, suggesting low profitability per unit of shareholders' funds.

In terms of recent financial results, the company's operating cash flow in September 2023 was at its lowest at Rs -14.41 Cr, and its EPS in the same quarter was also at its lowest at Rs 0.15.

Overall, while the technical indicators suggest a bullish trend for North Eastern Carrying Corporation's stock, its weak fundamental strengths and recent financial results may warrant a 'Hold' rating for now. Investors should keep an eye on the company's future performance to make informed decisions.