MarketsMOJO downgrades North Eastern Carrying Corp. due to weak fundamentals and high debt

North Eastern Carrying Corporation, a microcap logistics company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a negative CAGR growth in net sales over the past 5 years. Additionally, the company has a high debt to EBITDA ratio, indicating a low ability to service debt.
Despite positive results in March 2024, with the highest net sales, PAT, and EPS, the technical trend for the stock is currently sideways, with no clear price momentum. The technical trend has also deteriorated since July 8, 2024, generating a -2.68% return.

However, the company does have an attractive valuation with a ROCE of 6.4 and a 1.3 Enterprise value to Capital Employed. The stock is currently trading at a fair value compared to its historical valuations. Over the past year, the stock has generated a return of 43.67%, while profits have risen by 39.2%.

It is important to note that the majority shareholders of North Eastern Carrying Corporation are the promoters. This information, along with the company's current financial standing, may be useful for investors to consider before making any decisions regarding the stock.