North Eastern Carrying Corporation Receives 'Hold' Rating, Shows Promising Growth Potential

North Eastern Carrying Corporation, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on various technical indicators, such as MACD, Bollinger Band, and KST, which all point towards a bullish trend for the stock. Additionally, the stock is currently trading at a discount compared to its historical valuations, making it an attractive option for investors.
One of the major factors contributing to the 'Hold' rating is the company's attractive valuation, with a ROCE of 7.3 and a 1.7 Enterprise value to Capital Employed. This indicates that the company is utilizing its capital efficiently and has the potential for future growth.

Moreover, North Eastern Carrying Corporation has consistently generated returns for its shareholders over the past three years, outperforming the BSE 500 index. In the last year alone, the stock has generated a return of 44.74%, while its profits have increased by 20%.

However, the company does have some weak points that investors should be aware of. Its long-term fundamental strength is relatively low, with a -1.58% CAGR growth in net sales over the last five years. Additionally, the company has a high Debt to EBITDA ratio of 5.93 times, indicating a low ability to service debt. Furthermore, the company's Return on Equity (avg) is only 4.68%, which suggests low profitability per unit of shareholders' funds.

In the latest quarter, the company's results were flat, with the lowest operating cash flow and earnings per share. This could be a cause for concern for investors, and it is important to keep an eye on the company's future performance.

Overall, North Eastern Carrying Corporation's stock has shown promising growth and has the potential for future success. However, investors should also consider the company's weak points before making any investment decisions.