Eco Recycling Falls to 52-Week Low of Rs.495 Amidst Market Headwinds

Dec 01 2025 11:19 AM IST
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Eco Recycling, a player in the Other Utilities sector, has reached a new 52-week low of Rs.495, marking a significant decline in its stock price amid a contrasting market environment where broader indices show resilience.



Stock Price Movement and Market Context


On 1 December 2025, Eco Recycling's share price touched Rs.495, the lowest level recorded in the past year. This decline comes after three consecutive days of losses, during which the stock has recorded a cumulative return of -2.7%. The day’s performance showed a marginal decline of 0.55%, aligning with the sector’s overall movement.


In contrast, the broader market has demonstrated strength. The Sensex opened higher at 86,065.92 points, gaining 359.25 points (0.42%) before trading slightly lower at 85,865.67 points, still up 0.19% on the day. The Sensex is currently just 0.22% shy of its 52-week high of 86,055.86 points and has been on a three-week consecutive rise, accumulating a gain of 1.54%. Notably, the Sensex is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a bullish trend. Small-cap stocks have also led the market, with the BSE Small Cap index gaining 0.39% on the day.



Technical Indicators and Moving Averages


Eco Recycling’s technical indicators reflect a subdued trend. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests sustained downward pressure over multiple time frames, indicating that the stock has not found short-term or long-term support levels to halt the decline.



Financial Performance Overview


Over the past year, Eco Recycling’s stock has recorded a return of -48.30%, a stark contrast to the Sensex’s 7.60% gain during the same period. The stock’s 52-week high was Rs.1,043.15, highlighting the extent of the price contraction.


Financial metrics reveal a mixed picture. The company’s net sales have grown at an annual rate of 34.83%, and operating profit has shown a substantial annual growth rate of 92.55%. Despite this, profits have declined by 12.8% over the last year, indicating pressures on the bottom line despite top-line expansion.



Dividend and Liquidity Metrics


Eco Recycling’s dividend payout ratio (DPR) stands at 0.00%, reflecting no dividend distribution in the recent period. Additionally, the debtors turnover ratio for the half-year is at 3.38 times, one of the lowest in its peer group, which may suggest slower collection cycles or challenges in receivables management.



Valuation and Market Capitalisation


The company’s return on equity (ROE) is reported at 20.3%, which is relatively robust. However, the stock trades at a price-to-book value of 9.5, indicating a premium valuation compared to historical averages of its peers. This elevated valuation level may be a factor in the stock’s recent price adjustments.


Eco Recycling’s market capitalisation is graded at 4 on a scale relevant to its size category, reflecting its standing within the Other Utilities sector. Despite the company’s size, domestic mutual funds hold no stake in the stock, which could be indicative of selective institutional interest or valuation concerns.




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Comparative Market Performance


Eco Recycling’s performance has lagged behind broader market indices. While the BSE500 index has generated returns of 5.27% over the last year, Eco Recycling’s stock has recorded negative returns of -48.46%. This underperformance is notable given the company’s sector and size.


The stock’s recent price decline to Rs.495 is a significant retracement from its 52-week high of Rs.1,043.15, representing a drop of over 52%. This decline has occurred despite the company’s low debt-to-equity ratio, which averages at zero, suggesting a conservative capital structure.



Sector and Industry Context


Operating within the Other Utilities sector, Eco Recycling faces a competitive environment where valuation and profitability metrics are closely scrutinised. The company’s premium valuation relative to peers, combined with subdued profit trends, may be factors influencing the stock’s current price level.




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Summary of Key Metrics


To summarise, Eco Recycling’s stock has reached a 52-week low of Rs.495 after a period of sustained price declines. The stock trades below all major moving averages, reflecting ongoing downward momentum. Despite strong growth rates in net sales and operating profit, the company’s profits have contracted over the past year, and dividend payments have been absent.


The stock’s valuation remains elevated relative to peers, with a price-to-book ratio of 9.5 and a return on equity of 20.3%. The company’s conservative debt profile contrasts with its subdued stock performance. Meanwhile, the broader market and sector indices have shown resilience, highlighting the divergence in performance.


These factors collectively provide a comprehensive view of Eco Recycling’s current market position and recent price movements.






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