Current Rating Overview
MarketsMOJO’s rating of Sell for Indo Count Industries Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. The rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment appeal within the Garments & Apparels sector.
Quality Assessment
As of 02 February 2026, Indo Count Industries Ltd holds a good quality grade. This reflects the company’s operational strengths and business fundamentals. Over the past five years, the company has demonstrated moderate growth in net sales, averaging an annual increase of 14.60%. However, operating profit growth has been more subdued, at 4.84% annually, indicating some pressure on margins or cost structures. Despite these challenges, the company maintains a stable market presence in the garments and apparels sector, supported by its product portfolio and manufacturing capabilities.
Valuation Perspective
The valuation grade for Indo Count Industries Ltd is currently assessed as fair. This suggests that the stock’s price relative to its earnings, book value, and other valuation metrics is neither significantly undervalued nor overvalued. Investors should note that while the valuation does not present an immediate bargain, it also does not imply excessive premium pricing. The fair valuation grade advises a balanced approach, considering other factors such as financial trends and technical signals before making investment decisions.
Financial Trend Analysis
The company’s financial trend is rated negative, reflecting recent performance challenges. The latest data as of 02 February 2026 shows that Indo Count Industries Ltd has reported negative results for five consecutive quarters. Profit after tax (PAT) for the nine months ended stands at ₹89.25 crores, representing a decline of 64.32% compared to previous periods. Similarly, profit before tax excluding other income (PBT less OI) for the quarter is ₹32.63 crores, down by 67.59%. Return on capital employed (ROCE) for the half year is at a low 9.92%, signalling diminished efficiency in generating returns from capital invested. These figures highlight significant headwinds impacting the company’s profitability and cash flow generation.
Technical Outlook
The technical grade for Indo Count Industries Ltd is bearish. This reflects the stock’s recent price movements and market sentiment. Over the past year, the stock has delivered a negative return of 22.22%, with a year-to-date decline of 16.47%. Shorter-term trends also show weakness, including a 15.55% drop over the last month and a 17.00% decline over three months. Despite a modest rebound of 2.59% on the most recent trading day, the overall technical indicators suggest downward momentum, cautioning investors about potential further declines or volatility in the near term.
Stock Performance Summary
As of 02 February 2026, Indo Count Industries Ltd is classified as a small-cap company within the Garments & Apparels sector. The stock’s performance over various time frames underscores the challenges faced by the company. While there have been short-term gains, such as a 5.15% increase over the past week, the longer-term trend remains negative. This mixed performance aligns with the current Sell rating, signalling that investors should carefully weigh the risks before committing capital.
Implications for Investors
The Sell rating from MarketsMOJO suggests that Indo Count Industries Ltd may not currently offer favourable risk-reward characteristics. Investors should consider the company’s subdued financial trend, bearish technical outlook, and only fair valuation when making portfolio decisions. The good quality grade indicates that the company retains some operational strengths, but these are currently overshadowed by profitability pressures and market sentiment. For those holding the stock, it may be prudent to monitor developments closely and evaluate alternative opportunities within the sector or broader market.
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Company Profile and Market Context
Indo Count Industries Ltd operates in the garments and apparels sector, a segment characterised by intense competition and sensitivity to consumer demand cycles. As a small-cap entity, the company faces challenges in scaling operations and maintaining profitability amid fluctuating raw material costs and global supply chain disruptions. The current market environment, coupled with the company’s recent financial performance, has contributed to the cautious stance reflected in the Sell rating.
Long-Term Growth Considerations
While the company has achieved a compound annual growth rate of 14.60% in net sales over the last five years, operating profit growth has lagged at 4.84%. This disparity suggests margin pressures and operational inefficiencies that need addressing to improve overall financial health. The persistent negative quarterly results and declining profitability metrics underscore the need for strategic initiatives to stabilise earnings and restore investor confidence.
Conclusion
In summary, Indo Count Industries Ltd’s current Sell rating by MarketsMOJO reflects a comprehensive evaluation of its quality, valuation, financial trend, and technical outlook as of 02 February 2026. While the company maintains certain operational strengths, the prevailing negative financial trends and bearish technical signals warrant caution. Investors should carefully consider these factors in the context of their portfolio objectives and risk tolerance before making investment decisions regarding this stock.
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