Current Rating and Its Significance
MarketsMOJO’s current rating of Sell for Incredible Industries Ltd indicates a cautious stance towards the stock. This rating suggests that investors should consider reducing their exposure or avoiding new purchases at this time, based on a comprehensive evaluation of the company’s quality, valuation, financial trends, and technical indicators. The rating was revised on 15 Dec 2025, reflecting a reassessment of the company’s fundamentals and market conditions.
Here’s How the Stock Looks Today
As of 27 December 2025, Incredible Industries Ltd exhibits a Mojo Score of 40.0, categorised under the Sell grade. This score is down 10 points from the previous 50, which corresponded to a Hold rating. The stock’s recent price movement shows a decline of 1.26% on the day, with a one-year return of -20.49%, significantly underperforming the broader BSE500 index, which has delivered a positive 5.76% return over the same period.
Quality Assessment
The company’s quality grade is currently rated as below average. This reflects concerns about its long-term fundamental strength, particularly its ability to generate consistent returns on capital. The average Return on Capital Employed (ROCE) stands at 8.04%, which is modest and indicates limited efficiency in deploying capital to generate profits. Additionally, a notable risk factor is the high level of promoter share pledging, with 68.03% of promoter shares pledged. This situation can exert downward pressure on the stock price, especially in volatile or falling markets, as pledged shares may be sold to meet margin calls.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Valuation Perspective
Despite the challenges in quality, the valuation grade for Incredible Industries Ltd is considered attractive. This suggests that the stock is trading at a price level that may offer value relative to its earnings, assets, or cash flows. However, attractive valuation alone does not offset the risks posed by weak fundamentals and market pressures. Investors should weigh this factor carefully against other metrics before making decisions.
Financial Trend and Stability
The financial grade is assessed as positive, indicating that the company has demonstrated some favourable trends in its financial performance. This may include improvements in revenue growth, profitability, or cash flow generation. Nonetheless, these positive trends have not been sufficient to overcome the broader concerns about the company’s quality and market risks, which influence the overall Sell rating.
Technical Analysis
From a technical standpoint, the stock is currently exhibiting a sideways trend. This means that price movements have been relatively flat or range-bound without a clear upward or downward momentum. Such a pattern often signals uncertainty among investors and can precede either a breakout or further declines, depending on market catalysts and company developments.
Performance Relative to Market
The latest data shows that Incredible Industries Ltd has underperformed the market significantly over the past year. While the BSE500 index has generated a positive return of 5.76%, the stock has declined by 20.49%. This divergence highlights the stock’s relative weakness and the challenges it faces in regaining investor confidence and market share.
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Implications for Investors
For investors, the Sell rating on Incredible Industries Ltd signals caution. The combination of below-average quality, high promoter share pledging, and underperformance relative to the broader market suggests elevated risks. While the stock’s valuation appears attractive and financial trends show some positivity, these factors do not currently outweigh the concerns. The sideways technical trend further emphasises the lack of clear momentum, making it prudent for investors to reassess their holdings and consider alternatives with stronger fundamentals and market positioning.
Summary
In summary, Incredible Industries Ltd’s current Sell rating by MarketsMOJO, updated on 15 Dec 2025, reflects a comprehensive evaluation of its present-day fundamentals and market conditions as of 27 December 2025. Investors should note the stock’s weak long-term fundamental strength, significant promoter share pledging, and recent underperformance against the market benchmark. Although valuation and financial trends offer some positive signals, the overall outlook remains cautious, advising a conservative approach to this stock in the current environment.
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