Key Events This Week
2 Feb: New 52-week low at Rs.13.97
5 Feb: Further 52-week low at Rs.13.11
6 Feb: Q3 FY26 results reveal sharp profit surge amid concerns
Week Close: Rs.14.16 (-5.16%) vs Sensex +1.51%
Monday, 2 February: Stock Hits New 52-Week Low Amid Sector Pressures
North Eastern Carrying Corporation Ltd’s share price declined sharply on 2 February 2026, falling 7.97% to Rs.13.74, marking a fresh 52-week low of Rs.13.97 during the session. This drop extended a two-day losing streak, with the stock down 5.29% over that period. The decline was more pronounced than the Sensex’s 1.03% fall, signalling significant underperformance. The transport services sector, in which the company operates, faced ongoing headwinds, contributing to the negative sentiment.
Technical indicators showed the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring sustained downward momentum. The company’s financial fundamentals, including a five-year average ROCE of 6.32% and a deteriorating half-year ROCE of 4.83%, have weighed on investor confidence. Additionally, the company’s debt servicing capacity remains strained, with a high Debt to EBITDA ratio of 5.28 times and rising interest expenses.
Tuesday, 3 February to Wednesday, 4 February: Modest Recovery Amid Broader Market Rally
Following the sharp decline on Monday, the stock showed signs of modest recovery on 3 February, gaining 2.04% to close at Rs.14.02. This rebound coincided with a strong Sensex rally of 2.63%, which closed at 36,755.96. However, the stock’s volume declined significantly to 9,868 shares, indicating cautious trading. On 4 February, the stock price inched up by 0.14% to Rs.14.04, while the Sensex added a further 0.37%, closing at 36,890.21.
Despite the slight gains, the stock remained below its longer-term moving averages, reflecting persistent downward pressure. The limited volume and marginal price changes suggested that investors remained wary amid the company’s ongoing financial challenges and sector uncertainties.
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Thursday, 5 February: New 52-Week Low Despite Outperformance vs Sector
The stock plunged to a fresh 52-week low of Rs.13.11 on 5 February 2026, closing at Rs.13.91, down 0.93% on the day. Despite this, it outperformed the Transport Services sector by 3.75%, registering a 3.42% gain relative to the sector’s decline. This modest recovery over the last three trading sessions yielded a cumulative return of 5.68%, though the stock remained below its 20-day and longer moving averages.
The broader market was weaker, with the Sensex falling 0.53% to 36,695.11. The Sensex’s proximity to its 52-week high contrasted with the stock’s continued weakness, highlighting company-specific challenges. The stock’s valuation remains attractive on an enterprise value to capital employed basis at 0.8, but the deteriorating profitability and elevated debt levels continue to weigh on sentiment.
Friday, 6 February: Quarterly Results Show Sharp Profit Surge Amid Lingering Concerns
On 6 February, North Eastern Carrying Corporation Ltd closed at Rs.14.16, gaining 1.80% on the day as the Sensex inched up 0.10% to 36,730.20. The company reported a sharp profit surge in its Q3 FY26 results, which briefly lifted investor sentiment. However, deeper concerns remain due to the company’s three consecutive quarters of negative earnings prior to this, a 44.95% decline in profit after tax over the latest six months, and rising interest expenses up 48.44% to Rs.4.75 crore.
These mixed signals contributed to the stock’s overall weekly decline of 5.16%, underperforming the Sensex’s 1.51% gain. The company’s Mojo Score remains at 15.0 with a Strong Sell grade, reflecting ongoing financial and operational challenges.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.13.74 | -7.97% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.14.02 | +2.04% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.14.04 | +0.14% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.13.91 | -0.93% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.14.16 | +1.80% | 36,730.20 | +0.10% |
Key Takeaways
The week’s price action for North Eastern Carrying Corporation Ltd was dominated by fresh 52-week lows on 2 and 5 February, reflecting persistent financial and operational challenges. The stock’s 5.16% weekly decline contrasted sharply with the Sensex’s 1.51% gain, highlighting significant underperformance.
Despite a sharp profit surge reported in Q3 FY26, the company’s fundamentals remain under pressure. Profit after tax contracted by 44.95% over the latest six months, while interest expenses rose 48.44%, signalling elevated financial costs. The Debt to EBITDA ratio of 5.28 times and declining ROCE further underscore the company’s constrained financial health.
Valuation metrics such as an enterprise value to capital employed ratio of 0.8 suggest the stock is trading at a discount relative to peers, but this has not translated into positive price momentum. The Mojo Score of 15.0 and Strong Sell grade reflect the cautious stance of the market and analysts.
Trading volumes were generally subdued, indicating limited investor conviction amid mixed signals from quarterly results and sector headwinds. The stock’s inability to sustain gains above key moving averages points to ongoing downward pressure.
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