Stock Performance and Market Context
On the day in question, International Combustion (India) Ltd opened with a gap down of -5.93%, hitting an intraday low of Rs.533.3, which represents its lowest price point in the past year. The stock closed with a day change of -1.22%, underperforming the industrial manufacturing sector by 1.17%. This decline contrasts with the broader market’s positive momentum, as the Sensex recovered from an early loss of 100.91 points to close 0.25% higher at 81,740.39.
The stock’s price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning underscores the challenges faced by the company in regaining investor confidence.
Financial Metrics and Recent Results
International Combustion’s recent quarterly results have contributed to the subdued sentiment. The company reported a flat performance in the September 2025 quarter, with profit after tax (PAT) falling sharply by 42.9% to Rs.0.12 crore. This decline in profitability has weighed on the stock’s valuation and market perception.
Return on Capital Employed (ROCE) for the half-year period stood at a low 9.34%, indicating limited efficiency in generating returns from capital invested. Meanwhile, the company’s Return on Equity (ROE) is at 9.2%, which, while modest, aligns with its valuation metrics.
Valuation and Debt Profile
Despite the recent price weakness, International Combustion maintains a relatively conservative financial structure. The average debt-to-equity ratio is low at 0.06 times, reflecting minimal leverage and a cautious approach to borrowing. The stock’s price-to-book value ratio is approximately 1, suggesting that the market currently values the company close to its book value, which is in line with its peers’ historical valuations.
Over the past year, the stock has generated a negative return of -30.40%, significantly underperforming the Sensex, which posted a positive return of 8.46% over the same period. Notably, the company’s profits have increased by 8.6% during this timeframe, resulting in a price-to-earnings-to-growth (PEG) ratio of 1.3, indicating a valuation that factors in moderate growth expectations.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Comparative Market Performance
International Combustion’s performance over the last year has been notably weaker than the broader market and its sector peers. While the BSE500 index has delivered returns of 8.49% in the same period, the stock’s negative return of -30.40% highlights a significant divergence. This underperformance is further emphasised by the stock’s failure to sustain levels above its 52-week high of Rs.1,049, which it reached earlier in the year.
The Sensex itself is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating a mixed technical backdrop for the broader market. Mega-cap stocks have been leading the market gains, while mid and small caps, including International Combustion, have faced headwinds.
Shareholding and Industry Position
The majority shareholding in International Combustion remains with the promoters, providing a stable ownership structure. The company operates within the industrial manufacturing sector, which has experienced varied performance across its constituents, with some indices such as NIFTY MEDIA and NIFTY REALTY also hitting 52-week lows on the same day.
Holding International Combustion (India) Ltd from Industrial Manufacturing? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Metrics
To summarise, International Combustion (India) Ltd’s stock has reached a new 52-week low of Rs.533.3, reflecting a year-long trend of underperformance relative to the broader market and sector indices. The company’s financial indicators, including a PAT decline of 42.9% in the recent quarter and a subdued ROCE of 9.34%, have contributed to the cautious market stance. However, the firm maintains a low debt profile and a valuation close to book value, with moderate profit growth over the past year.
While the stock’s technical indicators remain weak, the company’s stable shareholding and conservative financial structure provide a foundation amid the current market pressures.
Unlock special upgrade rates for a limited period. Start Saving Now →
