Stock Price Movement and Market Context
The stock of Indian Card Clothing Company Ltd, operating within the Garments & Apparels sector, declined sharply to an intraday low of Rs.207, representing a 3.23% drop on the day. This fall also outpaced the sector’s performance, underperforming by 3.04%. The stock closed with a day change of -2.34%, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
On the same day, the broader Sensex index opened flat but later declined by 416.33 points, or 0.54%, closing at 81,804.15. While some indices such as the S&P Bse Oil Gas hit new 52-week highs, Indian Card Clothing Company Ltd’s performance contrasted sharply with the market’s mixed trends.
Financial Performance and Fundamental Weaknesses
Over the past year, the stock has generated a negative return of 15.88%, significantly lagging behind the Sensex’s positive 9.63% gain. The company’s 52-week high was Rs.382, highlighting the extent of the recent decline. The company’s financial metrics reveal several areas of concern that have contributed to this downward trajectory.
Indian Card Clothing Company Ltd reported a net loss after tax (PAT) of Rs.-0.61 crore in the most recent quarter, a steep fall of 144.0% compared to previous periods. The company’s earnings before interest and tax (EBIT) to interest ratio averaged -5.03, indicating a weak ability to service debt obligations. This has resulted in a negative return on capital employed (ROCE), reflecting poor utilisation of capital resources.
Inventory management also appears strained, with the inventory turnover ratio at a low 3.68 times for the half-year period, suggesting slower movement of stock. Cash and cash equivalents stood at Rs.11.50 crore, the lowest level recorded in recent periods, which may limit the company’s liquidity and operational flexibility.
Quarter after quarter, this Small Cap from the Lifestyle sector delivers without fail! Just added to our Reliable Performers with proven staying power. Stability meets growth here beautifully.
- - Consistent quarterly delivery
- - Proven staying power
- - Stability with growth
Valuation and Risk Profile
The stock’s valuation metrics indicate elevated risk compared to its historical averages. Negative earnings before interest, tax, depreciation and amortisation (EBITDA) further underline the financial strain. Over the last three years, Indian Card Clothing Company Ltd has consistently underperformed the BSE500 benchmark, reflecting persistent challenges in generating shareholder value.
Despite the company’s promoter holding majority ownership, the fundamental strength remains weak, as reflected in the MarketsMOJO Mojo Score of 3.0 and a recent downgrade from a Sell to a Strong Sell rating on 18 August 2025. The Market Cap Grade stands at 4, indicating a relatively modest market capitalisation within its sector.
Sector and Industry Considerations
Operating in the Garments & Apparels industry, Indian Card Clothing Company Ltd faces competitive pressures and sectoral headwinds that have contributed to its subdued performance. The company’s inability to maintain profitability and generate positive returns on capital contrasts with some peers that have managed to sustain growth and operational efficiency.
Indian Card Clothing Company Ltd or something better? Our SwitchER feature analyzes this micro-cap Garments & Apparels stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary of Key Financial Indicators
To summarise, Indian Card Clothing Company Ltd’s recent financial and market data highlight several critical points:
- New 52-week low price of Rs.207, down from a high of Rs.382 within the last year
- Negative PAT of Rs.-0.61 crore in the latest quarter, declining by 144.0%
- Weak EBIT to interest coverage ratio averaging -5.03
- Inventory turnover ratio at a low 3.68 times for the half-year period
- Cash and cash equivalents at Rs.11.50 crore, the lowest recorded recently
- Consistent underperformance against the BSE500 benchmark over the past three years
- Mojo Grade downgraded to Strong Sell with a score of 3.0 as of 18 August 2025
These factors collectively illustrate the pressures weighing on the company’s stock price and financial health.
Market Position and Shareholding
The company remains majority-owned by promoters, which provides a degree of ownership stability. However, this has not translated into improved financial performance or market valuation in recent periods. The stock’s current trading below all major moving averages indicates a lack of upward momentum and investor confidence in the near term.
Conclusion
Indian Card Clothing Company Ltd’s fall to a 52-week low of Rs.207 reflects a combination of weak financial results, deteriorating profitability, and challenging sector dynamics. The stock’s underperformance relative to benchmarks and its downgrade to a Strong Sell rating underscore the difficulties faced by the company. While the broader market shows mixed trends, the company’s financial metrics and valuation suggest continued caution in assessing its current standing.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
