Stock Price Movement and Market Context
On 30 Dec 2025, North Eastern Carrying Corporation Ltd’s stock price touched Rs.17.75, the lowest level recorded in the past year. This decline comes after two consecutive days of losses, during which the stock has fallen by 4.88%. The stock underperformed its sector by 1.74% on the day, reflecting broader challenges within the transport services segment.
Technical indicators show the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum. In contrast, the benchmark Sensex opened slightly lower at 84,600.99 points, down 0.11%, and was trading near 84,645 points, just 1.79% shy of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day average, indicating a generally positive market trend despite the stock’s weakness.
Financial Performance and Fundamental Metrics
North Eastern Carrying Corporation Ltd’s financial indicators reveal persistent challenges. The company’s one-year stock performance shows a steep decline of 49.61%, starkly contrasting with the Sensex’s 8.20% gain over the same period. The stock’s 52-week high was Rs.39, underscoring the extent of the recent fall.
Long-term fundamentals remain under pressure. The company’s average Return on Capital Employed (ROCE) stands at a modest 6.32%, reflecting limited efficiency in generating returns from its capital base. Net sales have grown at a subdued annual rate of 2.31% over the past five years, while operating profit has increased at 11.62%, indicating restrained growth momentum.
Debt servicing capacity is a concern, with a high Debt to EBITDA ratio of 5.28 times, suggesting elevated leverage and potential strain on cash flows. The company’s latest half-year results show a PAT of Rs.3.60 crores, which has contracted by 44.95%, while interest expenses have surged by 48.44% to Rs.4.75 crores. The half-year ROCE has declined to 4.83%, the lowest recorded, further highlighting operational pressures.
Rising fast and still accelerating! This Small Cap from FMCG sector is riding pure momentum right now. Jump in before the rally reaches its peak!
- - Accelerating price action
- - Pure momentum play
- - Pre-peak entry opportunity
Recent Quarterly Results and Profitability Trends
The company has reported negative results for three consecutive quarters, including the latest quarter ending March 2025. This marks a continuation of a challenging period following four prior quarters of losses. Profit after tax (PAT) has declined significantly, while interest costs have risen sharply, exerting pressure on net profitability.
Over the past year, profits have fallen by 38.8%, compounding the stock’s negative returns. The company’s performance has also lagged behind the broader BSE500 index over the last three years, one year, and three months, indicating sustained underperformance relative to the market.
Valuation and Market Perception
Despite the subdued financials, North Eastern Carrying Corporation Ltd’s valuation metrics suggest a relatively attractive entry point from a value perspective. The stock trades at a low enterprise value to capital employed ratio of 0.9, indicating it is priced at a discount compared to its peers’ historical averages. This valuation reflects market caution given the company’s financial profile and recent results.
The company’s Mojo Score stands at 15.0, with a Mojo Grade of Strong Sell as of 1 Feb 2025, an upgrade from the previous Sell rating. The market capitalisation grade is 4, reflecting its micro-cap status within the transport services sector. Promoters remain the majority shareholders, maintaining control over the company’s strategic direction.
Why settle for North Eastern Carrying Corporation Ltd? SwitchER evaluates this Transport Services micro-cap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Sector and Market Environment
The transport services sector has faced a mixed environment, with some companies showing resilience while others, including North Eastern Carrying Corporation Ltd, have struggled to maintain growth and profitability. The stock’s underperformance relative to the sector and broader market indices highlights the challenges faced by the company in sustaining operational and financial momentum.
While the Sensex remains close to its 52-week high, the stock’s persistent decline and trading below all major moving averages indicate a cautious market stance towards this micro-cap within the transport services space.
Summary of Key Metrics
To summarise, North Eastern Carrying Corporation Ltd’s stock has reached Rs.17.75, its lowest level in 52 weeks, following a 49.61% decline over the past year. The company’s financial performance has been marked by subdued sales growth, declining profits, rising interest costs, and a low ROCE of 4.83% in the latest half-year period. The stock trades at a discount to peers on valuation metrics but continues to face headwinds reflected in its Strong Sell Mojo Grade and weak market capitalisation grade.
The stock’s recent price action and fundamental data underscore the challenges faced by North Eastern Carrying Corporation Ltd in the current market environment.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →
