North Eastern Carrying Corp Receives 'Hold' Rating, Technical Indicators Point to Bullish Trend

North Eastern Carrying Corporation, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on various technical indicators such as MACD, Bollinger Band, and KST, which all point towards a bullish trend for the stock. Since February 29, 2024, the stock has generated a return of 1.94%.
In terms of valuation, the company has a very attractive ROCE of 7.3 and a low enterprise value to capital employed ratio of 1.7. Additionally, the stock is currently trading at a discount compared to its historical valuations. Despite a 93.51% return in the past year, the company's profits have only increased by 6.4%.

The majority shareholders of North Eastern Carrying Corporation are its promoters, indicating their confidence in the company's performance. However, the company's long-term fundamental strength is weak, with a negative CAGR growth in net sales over the last 5 years. It also has a high debt to EBITDA ratio of 5.93, indicating a low ability to service debt. The return on equity for the company is also low at 4.68%, indicating low profitability per unit of shareholders' funds.

In the latest quarter, the company's results were flat, with the highest interest expense of Rs 2.57 crore. While the stock has outperformed the market (BSE 500) with a return of 93.51%, investors should carefully consider the company's weak long-term fundamentals before making any investment decisions.