Stock Price Movement and Market Context
On 13 Feb 2026, International Combustion (India) Ltd's share price touched an intraday low of Rs.460.1, representing a 3.28% drop during the trading session. This new 52-week low comes after the stock experienced a consecutive five-day decline, resulting in a cumulative loss of 15.28% over this period. The stock's current price is substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In comparison, the Sensex opened at 82,902.73, down 772.19 points or 0.92%, and was trading at 82,920.36 (-0.9%) at the time. The benchmark index remains 3.91% shy of its 52-week high of 86,159.02. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals in the broader market.
Financial Performance and Profitability Concerns
The stock's decline is underpinned by disappointing financial results and weak profitability metrics. The company reported a quarterly net profit after tax (PAT) of negative Rs.2.65 crores, a steep fall of 170.7% compared to the previous period. Net sales for the quarter stood at Rs.72.19 crores, down 12.80%, reflecting a contraction in revenue generation.
Return on Capital Employed (ROCE) for the half-year period is notably low at 9.34%, while the average Return on Equity (ROE) remains subdued at 8.41%. These figures indicate limited efficiency in generating returns from shareholders’ funds and capital employed, contributing to the stock’s weak performance.
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Long-Term Underperformance and Valuation Metrics
Over the past year, International Combustion (India) Ltd has delivered a total return of -40.29%, significantly underperforming the Sensex, which posted an 8.91% gain over the same period. The stock’s 52-week high was Rs.1,049, highlighting the extent of the decline to the current low of Rs.460.1.
Despite the poor returns, the company maintains a low average debt-to-equity ratio of 0.06 times, indicating limited leverage. The stock trades at a price-to-book value of 0.9, suggesting a fair valuation relative to its book value. However, this valuation is at a premium compared to the average historical valuations of its peers within the industrial manufacturing sector.
Profitability has also deteriorated sharply, with profits falling by 71.9% over the last year. The company’s performance has been below par not only in the recent quarter but also over the longer term, underperforming the BSE500 index across one-year, three-year, and three-month timeframes.
Shareholding and Market Sentiment
The majority shareholding remains with the promoters, who continue to hold a controlling stake in the company. The stock’s Mojo Score currently stands at 26.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating issued on 4 Nov 2025. The market capitalisation grade is rated at 4, reflecting the company’s micro-cap status within the industrial manufacturing sector.
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Summary of Key Financial Indicators
International Combustion (India) Ltd’s financial indicators paint a challenging picture. The company’s ROE of 8.41% is below industry averages, signalling limited profitability per unit of shareholders’ funds. The negative quarterly PAT of Rs. -2.65 crores and a 12.80% decline in net sales highlight recent revenue and earnings pressures. The ROCE of 9.34% further underscores the constrained returns on capital employed.
The stock’s performance relative to the Sensex and BSE500 indices over multiple time horizons confirms a trend of underperformance. The low debt-to-equity ratio of 0.06 times indicates a conservative capital structure, but this has not translated into improved returns or valuation uplift.
Trading well below all major moving averages, the stock’s technical indicators align with the fundamental challenges faced by the company. The 52-week low of Rs.460.1 marks a significant milestone in the stock’s downward trajectory, reflecting both market sentiment and company-specific factors.
Market and Sector Comparison
Within the industrial manufacturing sector, International Combustion (India) Ltd’s valuation and performance metrics lag behind peers. The stock’s premium price-to-book ratio relative to sector averages contrasts with its weaker profitability and declining returns. The Sensex’s current position, trading below its 50-day moving average but with the 50DMA above the 200DMA, suggests a cautiously mixed market environment that has not favoured this stock.
Overall, the stock’s recent price action and financial results reflect a combination of subdued earnings, valuation pressures, and broader market headwinds impacting the industrial manufacturing sector.
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