North Eastern Carrying Corporation Receives 'Hold' Rating Amidst Bullish Trend and Attractive Valuation, But Long-Term Fundamentals Raise Concerns

North Eastern Carrying Corporation, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a technically bullish trend, with improvements in multiple indicators such as MACD, Bollinger Band, KST, and OBV. The company also has a very attractive valuation with a ROCE of 7.3 and a 1.7 Enterprise value to Capital Employed.
Despite its recent success in generating a return of 48.14% in the past year, the company's long-term fundamental strength is weak with a -1.43% CAGR growth in net sales over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 5.93 times, indicating a low ability to service debt. The return on equity for the company has also been low at 4.68%, suggesting low profitability per unit of shareholders' funds.

The majority shareholders of North Eastern Carrying Corporation are its promoters, and the company has consistently outperformed the BSE 500 index in the last 3 annual periods. However, the company's results for December 2023 were flat, with the highest interest expense at Rs 2.57 crore.

Overall, while the stock has shown positive growth in the short term, its long-term fundamentals and debt situation may be cause for concern. Investors may want to hold off on investing in North Eastern Carrying Corporation until there is more stability and growth in these areas.