Recent Price Movement and Market Context
On 2 Feb 2026, North Eastern Carrying Corporation Ltd’s stock price reached Rs.13.97, its lowest level in the past year. This decline comes as the broader market also showed signs of weakness, with the Sensex opening 167.26 points lower and trading at 80,509.68, down 0.26%. Notably, other indices such as the S&P BSE FMCG and NIFTY FMCG also hit new 52-week lows on the same day, reflecting a cautious market environment.
The stock’s performance over the last year has been notably poor, delivering a negative return of 52.88%, in stark contrast to the Sensex’s positive 3.87% gain over the same period. The 52-week high for the stock was Rs.31.99, highlighting the extent of the decline.
Technical indicators further underline the bearish trend, with the stock trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum.
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Financial Performance and Fundamental Metrics
North Eastern Carrying Corporation Ltd’s financial indicators reveal persistent challenges. The company’s long-term fundamental strength is weak, reflected in an average Return on Capital Employed (ROCE) of just 6.32%. Over the last five years, net sales have grown at a modest annual rate of 2.31%, while operating profit has increased by 11.62% annually, indicating limited growth momentum.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 5.28 times, suggesting elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation. This financial structure may constrain flexibility in managing obligations.
Recent quarterly results have been negative for three consecutive quarters, including the latest quarter ending March 2025. The company’s profit after tax (PAT) for the latest six months stood at Rs.3.60 crore, declining by 44.95% compared to the previous period. Meanwhile, interest expenses have increased by 48.44% to Rs.4.75 crore over the same timeframe, further pressuring profitability.
The half-year ROCE has deteriorated to a low of 4.83%, underscoring the subdued returns generated on capital employed in the near term.
Long-Term and Recent Performance Trends
Over the past three years, North Eastern Carrying Corporation Ltd has underperformed the BSE500 index across multiple time horizons, including one year and three months. The stock’s negative 52.88% return in the last year contrasts sharply with broader market gains, highlighting its relative weakness.
Profitability has also declined significantly, with profits falling by 38.8% over the past year. This combination of weak returns and shrinking profits has contributed to the stock’s current valuation and market sentiment.
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Valuation and Shareholding Structure
Despite the subdued financial performance, the stock exhibits a very attractive valuation profile. The Enterprise Value to Capital Employed ratio stands at a low 0.8, indicating that the market values the company below the capital it employs. This valuation is discounted relative to peers’ average historical valuations within the transport services sector.
The company’s shareholding is predominantly held by promoters, who maintain majority control. This concentrated ownership structure may influence strategic decisions and capital allocation going forward.
Summary of Key Metrics
To summarise, North Eastern Carrying Corporation Ltd’s key financial and market metrics as of 2 Feb 2026 are:
- New 52-week low price: Rs.13.97
- One-year stock return: -52.88%
- Sensex one-year return: +3.87%
- Average ROCE (5 years): 6.32%
- Debt to EBITDA ratio: 5.28 times
- PAT (latest six months): Rs.3.60 crore, down 44.95%
- Interest expense (latest six months): Rs.4.75 crore, up 48.44%
- Half-year ROCE: 4.83%
- Enterprise Value to Capital Employed: 0.8
- Mojo Score: 15.0 (Strong Sell, upgraded from Sell on 1 Feb 2025)
- Market Cap Grade: 4
- Day Change: -2.75%
Sector and Market Comparison
Within the transport services sector, North Eastern Carrying Corporation Ltd’s performance and valuation stand out for their relative weakness. The stock’s underperformance against the Sensex and BSE500 indices over multiple periods highlights challenges in maintaining competitive growth and profitability. The sector itself has seen some indices hit 52-week lows, reflecting broader pressures in the market environment.
Conclusion
North Eastern Carrying Corporation Ltd’s fall to a 52-week low of Rs.13.97 underscores a period of sustained financial and market difficulties. The combination of declining profits, elevated debt levels, and weak returns on capital has weighed on the stock’s performance. While the valuation appears attractive relative to capital employed and peers, the company’s recent results and long-term trends reflect ongoing challenges within its business and sector context.
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