The stock closed just 3.47% above its 52-week low of Rs 25.05, signalling persistent pressure on the share price. On the day of the latest trading session, IL&FS Engineering & Construction Co recorded a decline of 2.08%, underperforming its sector by 1.69%. This underperformance is further emphasised by the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained bearish momentum.
In comparison, the broader market index, Sensex, opened positively with a gain of 91.42 points but later reversed to close down by 313.36 points, or 0.26%, at 84,729.01. The Sensex remains close to its 52-week high, just 0.66% shy of the peak at 85,290.06, and is trading above its 50-day and 200-day moving averages, suggesting a more resilient market backdrop relative to IL&FS Engineering & Construction Co’s performance.
Over the past year, IL&FS Engineering & Construction Co’s stock has declined by 43.28%, a stark contrast to the Sensex’s positive return of 9.58% during the same period. The stock’s 52-week high was Rs 47, highlighting the extent of the price erosion experienced by the company’s shares.
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Financially, IL&FS Engineering & Construction Co exhibits several areas of concern. The company reports a negative book value, which points to weak long-term fundamental strength. Over the last five years, net sales have declined at an annual rate of 6.70%, while operating profit has remained flat, showing no growth. The company’s debt profile is notable, with an average debt-to-equity ratio of zero, indicating a high debt burden relative to equity.
Recent quarterly results for the period ending September 2025 reveal net sales at Rs 54.53 crore, down 21.3% compared to the previous four-quarter average. The profit after tax (PAT) for the latest six months stands at a loss of Rs 10.55 crore, reflecting a decline of 36.76%. Return on capital employed (ROCE) for the half-year is recorded at 4.96%, one of the lowest levels observed.
The stock’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) remain negative, contributing to the perception of risk associated with the share. Despite this, profits have shown a rise of 78.4% over the past year, a figure that contrasts with the stock’s negative price return, underscoring a disconnect between earnings and market valuation.
In the context of the broader market, the BSE500 index has generated returns of 8.43% over the last year, further highlighting IL&FS Engineering & Construction Co’s underperformance relative to its peers and the wider market.
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Shareholding patterns indicate that the majority of IL&FS Engineering & Construction Co’s shares are held by non-institutional investors. This ownership structure may influence the stock’s liquidity and trading dynamics in the market.
Overall, the stock’s decline to its 52-week low reflects a combination of subdued financial performance, negative returns, and market conditions that have not favoured the construction sector player. The company’s trading below all major moving averages and its negative book value highlight ongoing challenges in maintaining investor confidence and market valuation.
While the Sensex and broader market indices maintain a more positive trajectory, IL&FS Engineering & Construction Co’s stock continues to face headwinds, as evidenced by its recent price movements and financial metrics.
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