Stock Price Movement and Market Context
On 1 Dec 2025, Eco Recycling’s share price touched Rs.495, the lowest level recorded in the past year. This new low comes after three consecutive days of declines, during which the stock has recorded a cumulative return of approximately -2.7%. The stock’s current price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the broader market has maintained a positive trajectory. The Sensex opened at 86,065.92 points, gaining 359.25 points (0.42%) at the start of the trading session and was trading at 85,865.67 points, reflecting a modest gain of 0.19%. The index is also close to its 52-week high of 86,055.86 points, just 0.22% away, supported by a three-week consecutive rise and bullish positioning above its 50-day and 200-day moving averages. Small-cap stocks have been leading the market, with the BSE Small Cap index gaining 0.39% on the day.
Financial Performance and Valuation Metrics
Eco Recycling’s one-year performance shows a stark contrast to the Sensex. While the Sensex has recorded a gain of 7.60% over the past year, Eco Recycling’s stock has declined by approximately 48.30%. The stock’s 52-week high was Rs.1,043.15, highlighting the extent of the price contraction.
Examining the company’s financial indicators reveals several factors contributing to the stock’s subdued performance. The company reported flat results in the September 2025 quarter, with no dividend payout ratio (DPR) recorded, standing at 0.00%. The debtors turnover ratio for the half-year period is at 3.38 times, which is among the lowest in its peer group, suggesting slower collection efficiency.
Despite a return on equity (ROE) of 20.3%, the stock’s valuation appears elevated, trading at a price-to-book value of 9.5. This premium valuation relative to peers may be a factor in the stock’s price pressure, especially given the company’s profit decline of 12.8% over the past year. The stock’s market capitalisation grade is modest, reflecting its size and liquidity considerations.
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Shareholding and Market Position
Domestic mutual funds currently hold no stake in Eco Recycling, which may reflect a cautious stance given the company’s valuation and recent financial trends. The company’s debt-to-equity ratio remains low, averaging zero, indicating minimal leverage on its balance sheet. This conservative capital structure contrasts with the stock’s price performance, which has not reflected any benefit from low financial risk.
Over the past year, Eco Recycling’s net sales have grown at an annual rate of 34.83%, and operating profit has shown a substantial increase of 92.55%. These figures suggest healthy long-term growth in the company’s core business operations, despite the stock’s price decline and profit contraction.
Comparative Market Performance
Eco Recycling’s underperformance is further highlighted when compared to the BSE500 index, which has generated returns of 5.27% over the last year. The stock’s negative return of approximately 48.46% over the same period underscores the divergence between the company’s share price and broader market trends.
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Summary of Key Factors Affecting Stock Performance
Eco Recycling’s stock price decline to Rs.495 reflects a combination of factors including flat quarterly results, low dividend payout, and a low debtors turnover ratio. The valuation remains elevated relative to peers despite a profit decline, which may be contributing to the subdued market sentiment. The company’s low leverage and strong growth in net sales and operating profit provide a nuanced picture of its financial health.
While the broader market and small-cap segments have shown positive momentum, Eco Recycling’s stock has not aligned with these trends, resulting in a significant underperformance over the past year. The stock’s position below all major moving averages further emphasises the current downward pressure on its price.
Market Outlook and Positioning
As of 1 Dec 2025, Eco Recycling remains a notable example of divergence within the Other Utilities sector, where company-specific factors have outweighed broader market gains. The stock’s 52-week low serves as a key reference point for market participants analysing the company’s recent trajectory and valuation dynamics.
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