North Eastern Carrying Corporation Falls to 52-Week Low of Rs.18

Stock Price Movement and Market Context

On 24 Dec 2025, North Eastern Carrying Corporation’s stock price touched Rs.18, the lowest level recorded in the past year. Despite this, the stock has shown some resilience in recent sessions, posting gains over the last two days with a cumulative return of 2.39%. Today’s performance outpaced the transport services sector by 0.76%, indicating some short-term positive momentum.

Technical indicators reveal that the stock is trading above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This suggests that while there is some near-term support, the longer-term trend remains subdued.

In contrast, the broader market has exhibited strength. The Sensex opened flat but moved into positive territory, trading at 85,599.96 points, a 0.09% increase. The index is also approaching its 52-week high of 86,159.02, currently just 0.65% away. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a bullish trend. Small-cap stocks led the market rally, with the BSE Small Cap index gaining 0.33% today.

Financial Performance and Long-Term Trends

North Eastern Carrying Corporation’s financial results over the past year have reflected considerable strain. The stock has generated a negative return of 47.71% over the last twelve months, a stark contrast to the Sensex’s positive 9.09% return in the same period. This underperformance extends beyond the last year, with the company lagging the BSE500 index over the past three years, one year, and three months.

Examining the company’s fundamentals, the average Return on Capital Employed (ROCE) stands at 6.32%, indicating modest efficiency in generating returns from its capital base. Over the last five years, net sales have grown at an annual rate of 2.31%, while operating profit has expanded at 11.62% annually. These figures suggest limited growth momentum in both top-line and operating profitability.

Debt servicing capacity remains a concern, with a Debt to EBITDA ratio of 5.28 times, signalling a relatively high leverage level compared to earnings before interest, taxes, depreciation, and amortisation. This elevated ratio points to potential challenges in managing debt obligations effectively.

Recent Quarterly Results and Profitability

The company has reported negative results for three consecutive quarters, including the latest quarter ending March 2025. The latest half-year figures show a Profit After Tax (PAT) of Rs.3.60 crores, reflecting a decline of 44.95% compared to the previous period. Meanwhile, interest expenses have risen by 48.44% to Rs.4.75 crores, further pressuring net profitability.

The half-year ROCE has dropped to 4.83%, the lowest level recorded in recent periods, underscoring the subdued returns on capital employed. These results highlight the challenges faced by North Eastern Carrying Corporation in maintaining profitability and managing its cost structure.

Valuation and Relative Positioning

Despite the subdued financial performance, the stock’s valuation metrics indicate a relatively attractive entry point compared to its historical averages and sector peers. The company’s Enterprise Value to Capital Employed ratio stands at 0.9, suggesting that the stock is trading at a discount relative to the capital employed in the business.

This valuation discount may reflect the market’s cautious stance given the company’s recent earnings trends and leverage levels. Over the past year, profits have contracted by 38.8%, which has contributed to the stock’s price decline and valuation adjustment.

Shareholding and Industry Context

North Eastern Carrying Corporation operates within the transport services sector, a segment that has seen mixed performance amid broader market trends. The company’s majority shareholding rests with promoters, indicating concentrated ownership.

The stock’s 52-week high was Rs.39, more than double the current price, illustrating the extent of the decline over the past year. This performance contrasts with the broader market indices, which have maintained positive returns and technical strength.

While the company’s long-term growth rates for sales and operating profit remain modest, the transport services sector overall has experienced varied dynamics, with some peers showing stronger growth and valuation metrics.

Summary of Key Metrics

To summarise, North Eastern Carrying Corporation’s key financial and market metrics include:

• 52-week low price: Rs.18


• 52-week high price: Rs.39


• One-year stock return: -47.71%


• Sensex one-year return: 9.09%


• Average ROCE (5 years): 6.32%


• Net sales growth (5 years CAGR): 2.31%


• Operating profit growth (5 years CAGR): 11.62%


• Debt to EBITDA ratio: 5.28 times


• Latest half-year PAT: Rs.3.60 crores (-44.95%)


• Latest half-year interest expense: Rs.4.75 crores (+48.44%)


• Half-year ROCE: 4.83%


• Enterprise Value to Capital Employed: 0.9

These figures provide a comprehensive view of the company’s current financial standing and market valuation.

Conclusion

North Eastern Carrying Corporation’s stock reaching a 52-week low of Rs.18 reflects a period of subdued financial performance and market valuation adjustments. The company’s recent quarterly results, leverage levels, and long-term growth rates have contributed to this price movement. While the broader market and transport services sector have shown relative strength, the stock’s performance remains challenged by its earnings trends and capital efficiency metrics.

Investors analysing this stock will note the contrast between the company’s valuation discount and its recent financial results, which have shaped the current market assessment.

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