North Eastn.Car. (NECCLTD)

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Trading below book value: P/B of 0.78 vs book value of ₹20.54
• Moderate leverage: debt/equity of 0.53
• Strong profit growth of 77.84% in recent period
• Promoter holding at 54.19% aligns interests
• Piotroski F-score of 6/9 indicates decent financial health

Concerns

• Sales declined 11.20%, showing a weak top line
• Low profitability: ROE of 4.09% and ROCE of 6.67%
• No dividend yield (0%) offers no income cushion
• High profit growth may be a low-base effect, not a durable trend

AI Analysis

Looking at North Eastn.Car., I see a small logistics player trading at a significant discount to its book value. At ₹15.97 against a book value of ₹20.54, the market prices it at only 0.78 times net assets. That gives a Graham-style investor some margin of safety. But the business quality gives me pause. Return on equity is just 4.09% and return on capital employed is 6.67% - this is not a high-return operation. Sales have declined 11.20%, which is concerning, yet profits jumped 77.84%. The latest quarter shows sales of ₹72 Cr and net profit of ₹3 Cr, implying a margin near 4%. With debt-to-equity of 0.53, the balance sheet is manageable, though not pristine. The Piotroski F-score of 6/9 suggests moderate financial health, but the PEG ratio of 0.21 reflects earnings growth that appears unsustainable given the shrinking revenue base. Promoter holding at 54.19% shows skin in the game, yet there is zero dividend, so minority shareholders depend entirely on capital appreciation. As a value investor, I appreciate the asset backing, but I need to see sales stabilize and returns improve. This is more of an asset play than a compounder. I would wait for evidence of a genuine turnaround before committing, while keeping a close eye on the top line.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer