Recent Price Movement and Market Context
On 2 December 2025, Eco Recycling’s share price touched an intraday low of Rs.463, representing a 4.07% decline during the trading session. This level marks the lowest price point for the stock in the past year, underscoring a notable shift in market sentiment. Over the last four trading days, the stock has recorded a cumulative return of -8.76%, indicating persistent selling pressure.
The stock’s performance today underperformed its sector peers by 3.18%, with the broader Other Utilities sector showing relative resilience. Eco Recycling is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend in technical terms.
Meanwhile, the benchmark Sensex opened lower by 316.39 points and was trading at 85,303.79, down 0.39%. Despite this, the Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating an overall bullish market environment contrasting with Eco Recycling’s performance.
Financial Performance and Valuation Metrics
Eco Recycling’s one-year performance shows a decline of 51.24%, significantly lagging behind the Sensex’s 6.30% gain over the same period. The stock’s 52-week high was Rs.1,043.15, highlighting the extent of the recent price contraction.
Financial results for the September 2025 quarter were largely flat, with no material growth in key profitability indicators. The company’s dividend payout ratio stands at 0.00%, reflecting an absence of dividend distribution during the period. Additionally, the debtors turnover ratio for the half-year was recorded at 3.38 times, one of the lowest in recent periods, suggesting slower collection efficiency.
Despite a return on equity (ROE) of 20.3%, the stock is trading at a price-to-book value of 9.2, indicating a valuation premium relative to its peers. This premium valuation contrasts with the company’s recent profit trajectory, which shows a decline of 12.8% over the past year.
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Shareholding and Market Position
Eco Recycling’s market capitalisation is graded at a moderate level, but domestic mutual funds currently hold no stake in the company. This absence of institutional ownership may reflect a cautious stance given the company’s recent financial and valuation profile. The company’s debt-to-equity ratio remains low, averaging zero, which indicates minimal leverage and a conservative capital structure.
In comparison to the broader BSE500 index, which has generated returns of 4.07% over the last year, Eco Recycling’s negative returns of over 51% highlight a significant underperformance relative to the market.
Growth Trends and Operational Metrics
On a positive note, the company has demonstrated healthy long-term growth in net sales, with an annual growth rate of 34.83%. Operating profit has also shown a substantial increase of 92.55%, suggesting that the core business activities have expanded over time despite recent profit declines.
However, these growth figures have not translated into improved stock performance or investor confidence, as reflected in the recent price movements and valuation levels.
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Summary of Current Situation
Eco Recycling’s stock has reached a critical price level not seen in the past year, reflecting a combination of subdued financial results, valuation concerns, and market underperformance. The stock’s position below all major moving averages and its significant lag behind benchmark indices illustrate the challenges faced by the company in the current market environment.
While the company’s sales and operating profit growth rates indicate some underlying business expansion, these have not been sufficient to support the stock price or attract institutional investment. The absence of dividend payouts and low debtor turnover ratio further contribute to the cautious market stance.
Overall, the stock’s recent trajectory highlights the importance of closely monitoring financial metrics and market conditions as Eco Recycling navigates this period of price weakness.
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