Stock Price Movement and Trading Patterns
The stock of Indian Card Clothing Company Ltd has been on a downward trajectory, losing value for four consecutive trading sessions and declining by 5.79% over this period. Today's closing price of Rs.213.05 represents the lowest level the stock has reached in the past year, a notable drop from its 52-week high of Rs.382. The stock also underperformed its sector by 0.51% today, indicating relative weakness within the Garments & Apparels industry segment.
Trading activity has been somewhat erratic, with the stock not trading on one of the last 20 trading days. Additionally, the price has fluctuated within a narrow range of Rs.0.95 recently, suggesting limited volatility but sustained downward pressure. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish trend across multiple timeframes.
Market Context and Benchmark Comparison
In contrast to Indian Card Clothing Company Ltd’s performance, the broader market has shown mixed signals. The Sensex opened lower by 242.12 points and closed down by 479.66 points at 82,572.88, a decline of 0.87%. Despite this, the Sensex remains only 4.34% below its 52-week high of 86,159.02, maintaining a relatively strong position. The index trades below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating some underlying market resilience.
Over the past year, Indian Card Clothing Company Ltd has delivered a negative return of 17.00%, significantly lagging the Sensex’s positive 10.92% gain. This consistent underperformance extends over the last three years, with the stock also trailing the BSE500 index in each annual period, highlighting ongoing challenges in generating shareholder value relative to broader market benchmarks.
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Financial Performance and Fundamental Metrics
Indian Card Clothing Company Ltd’s financial indicators reveal areas of concern. The company has reported operating losses, which have contributed to a weak long-term fundamental strength assessment. Its ability to service debt is limited, with an average EBIT to interest ratio of -5.03, indicating that earnings before interest and tax are insufficient to cover interest expenses.
Recent quarterly results show a net loss after tax (PAT) of Rs. -0.61 crore, a decline of 144.0% compared to the previous period. The inventory turnover ratio for the half-year stands at a low 3.68 times, suggesting slower movement of stock relative to peers. Cash and cash equivalents have also diminished to Rs.11.50 crore, reflecting tighter liquidity conditions.
The company’s return on capital employed (ROCE) is negative, consistent with reported losses and signalling challenges in generating returns from invested capital. Furthermore, the stock’s negative EBITDA status adds to the risk profile, with valuations appearing elevated relative to historical averages.
Shareholding and Market Grade Assessments
The majority shareholding remains with the promoters, maintaining control over company decisions. From a market grading perspective, Indian Card Clothing Company Ltd holds a Mojo Score of 3.0 and has been assigned a Strong Sell grade as of 18 August 2025, an upgrade from the previous Sell rating. The market capitalisation grade stands at 4, reflecting its micro-cap status within the Garments & Apparels sector.
Despite the recent downgrade in sentiment, the stock’s performance and financial metrics continue to reflect significant challenges, as evidenced by its persistent underperformance against sector and benchmark indices.
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Summary of Key Concerns
The stock’s fall to a 52-week low is underpinned by a combination of weak financial results, deteriorating profitability, and subdued market sentiment. The company’s negative returns, poor debt servicing capacity, and declining liquidity have contributed to its current valuation pressures. The narrow trading range and consistent underperformance relative to the Sensex and BSE500 indices further highlight the challenges faced by Indian Card Clothing Company Ltd in regaining momentum.
While the broader market shows some resilience, the stock’s position below all major moving averages and its Strong Sell Mojo Grade reflect ongoing caution among market participants. The company’s financial metrics, including negative ROCE and EBITDA, reinforce the subdued outlook for the stock’s near-term performance.
Market Outlook and Positioning
Indian Card Clothing Company Ltd’s current market capitalisation and sector placement within Garments & Apparels position it as a micro-cap stock facing significant headwinds. The stock’s recent price action and fundamental indicators suggest that it remains under pressure amid a challenging operating environment and competitive sector dynamics.
Investors monitoring the stock will note the persistent decline over the past year and the absence of positive momentum signals, as reflected in the technical and fundamental assessments. The company’s promoter holding remains a stabilising factor, but the overall market grading and financial performance continue to weigh on the stock’s valuation.
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