North Eastern Carrying Corp. Ltd. (NECCLTD) AI Stock Analysis

• Market Cap: ₹1.42B
• Dividend Yield: N/A
• Average Volume (3M): 9.46K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.50
• Revenue Growth: -8.31%
• EPS Growth: -40.98%
• Country: IN
• Employees: 478
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.34
• Shares Outstanding: 99,946,365
• 10 Day Avg. Volume: 6,384
• 30 Day Avg. Volume: 9,462
• PEG Ratio: 1.03
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.73
• P/FCF Ratio: -9.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹13.50 ▼(-25.50% Downside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held down primarily by weak cash flow (negative operating and free cash flow) and a bearish technical trend with the price below key moving averages and negative MACD. Operational margin improvement and a solid equity base provide some support, while valuation appears moderate based on the P/E.

Positive Factors

Operational Margin Improvement

Sustained improvement in gross, EBIT and EBITDA margins indicates better cost control and operational efficiency. Over 2-6 months this supports resilient operating profitability even if volumes fluctuate, enabling the company to convert revenue into earnings more reliably.

Strong Equity Ratio

A strong equity ratio means a large portion of assets funded by equity rather than debt, reducing insolvency risk. For a capital-intensive trucking business this durable balance-sheet strength improves resilience to cyclical downturns and supports access to financing when needed.

Manageable Debt-to-Equity and Improving ROE

Manageable leverage together with rising ROE signals improving returns on shareholders' capital while not being overly burdened by leverage. This combination supports sustainable profitability and gives management flexibility to invest in fleet or service expansion over the medium term.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flows undermine the firm's ability to self-finance capex, fleet maintenance or debt service. Over several months this drives reliance on external financing, raises refinancing risk, and can constrain strategic investments or dividend capacity.

Revenue and EPS Decline

Declining revenue and a steep EPS drop point to weakening demand or pricing pressure and reduced profitability. If these trends persist over months, scale economics and margin recovery become harder, limiting free cash generation and undermining return-on-capital improvements.

High Total Debt Levels

Elevated absolute debt, even with a manageable D/E ratio, increases fixed obligations and interest exposure. Combined with weak cash flow, high debt raises refinancing and liquidity risk, potentially forcing deferment of fleet upgrades or operational spending that harm competitiveness long-term.

North Eastern Carrying Corp. Ltd. Business Overview & Revenue Model

Company Description

North Eastern Carrying Corporation Limited provides transportation and logistics services in India, Nepal, Bhutan, and Bangladesh. The company small parcels, as well as full truck load, project, and over dimensional consignments. It also offers containerized movement of cargo, packing and moving, warehousing, and third party logistics and storage facilities. The company operates through a network of approximately 250 branches. North Eastern Carrying Corporation Limited was incorporated in 1984 and is based in Delhi, India.

How the Company Makes Money

NECCLTD generates revenue through multiple streams, primarily by charging clients for transportation services based on distance, type of cargo, and additional services such as packaging and warehousing. The company also earns money from long-term contracts with businesses that require regular freight services, providing a stable income source. Additionally, NECCLTD may benefit from partnerships with other logistics providers and e-commerce platforms, expanding its reach and enhancing service offerings, which can lead to increased sales. Seasonal demand fluctuations and economic growth in the regions served also play a significant role in driving revenue.

North Eastern Carrying Corp. Ltd. Financial Statement Overview

Summary

Mixed fundamentals: improved gross/EBIT/EBITDA margins and a relatively strong equity position are positives, but modest profitability and weak liquidity are key risks due to negative operating and free cash flow alongside high total debt.

Income Statement

The company has shown fluctuations in revenue, with a decline in the latest period. Gross profit margin has improved from previous years, indicating better cost management. Net profit margin remains modest, reflecting limited profitability. EBIT and EBITDA margins show a positive trend, highlighting operational improvements.

Balance Sheet

Debt-to-equity ratio is manageable, though the company has high total debt levels. Return on Equity has shown improvement, suggesting better profitability relative to equity. Equity ratio is strong, indicating a solid financial position with a good proportion of assets funded by equity.

Cash Flow

The company faces challenges with negative operating cash flow, which is a concern for liquidity. Free cash flow has also been negative, indicating cash flow constraints. However, the company has been able to manage financing activities effectively to support operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.29B	3.29B	3.35B	3.06B	2.50B	2.31B
Gross Profit	243.72M	375.54M	391.24M	341.17M	270.82M	200.14M
EBITDA	162.22M	226.76M	216.63M	202.74M	155.15M	115.28M
Net Income	69.93M	102.53M	80.22M	57.71M	42.58M	14.30M
Balance Sheet
Total Assets	3.66B	3.45B	3.17B	2.43B	2.18B	1.96B
Cash, Cash Equivalents and Short-Term Investments	108.03M	155.04M	212.47M	81.45M	76.65M	55.30M
Total Debt	1.20B	1.06B	1.03B	1.19B	1.01B	861.68M
Total Liabilities	1.40B	1.26B	1.23B	1.39B	1.19B	1.02B
Stockholders Equity	2.26B	2.19B	1.94B	1.05B	989.36M	947.20M
Cash Flow
Free Cash Flow	-2.71M	-258.79M	-490.68M	-180.12M	-133.33M	-106.99M
Operating Cash Flow	69.94M	-212.38M	-462.10M	-144.11M	-102.09M	-105.09M
Investing Cash Flow	-54.74M	-18.26M	-60.02M	-31.89M	-24.26M	3.97M
Financing Cash Flow	-41.10M	173.22M	653.14M	180.82M	147.69M	100.49M

North Eastern Carrying Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NECCLTD, the sentiment is Negative. The current price of 18.12 is above the 20-day moving average (MA) of 14.56, above the 50-day MA of 16.13, and below the 200-day MA of 20.53, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 35.00 is Neutral, neither overbought nor oversold. The STOCH value of 32.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NECCLTD.

North Eastern Carrying Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MAGNUM	59 Neutral	₹1.49B	-12.80	―	―	13.74%	-118.80%
NECCLTD	46 Neutral	₹1.42B	16.13	―	―	-8.31%	-40.98%
IL&FSENGG	40 Underperform	₹3.32B	-232.36	―	―	-6.13%	98.35%
PBAINFRA	40 Underperform	₹128.39M	-0.59	―	―	―	―
SICALLOG	39 Underperform	₹13.19B	9.71	―	―	76.34%	94.50%

North Eastern Carrying Corp. Ltd. Corporate Events

North Eastern Carrying Corporation Fined for Non-Compliance by NSE

North Eastern Carrying Corporation Limited has been fined Rs. 540,000 plus GST by the National Stock Exchange (NSE) for non-compliance with Schedule XIX related to the listing of securities. Despite the fine, the company states there is no material impact on its financial or operational activities and is currently assessing the situation to respond appropriately.

North Eastern Carrying Corp. Faces Fine for SEBI Non-Compliance

North Eastern Carrying Corporation Limited has been fined Rs. 5,40,000 plus GST by BSE Limited for non-compliance with a SEBI Master Circular dated June 21, 2023. The company stated that this fine does not have a material impact on its financial or operational activities and is currently evaluating the fine to determine the necessary response.