Stock Performance and Market Context
On 24 Feb 2026, International Combustion (India) Ltd’s shares touched an intraday low of Rs.425, down 4.6% from the previous close, and underperformed its sector by 1.56%. The stock’s decline contrasts with the broader market, where the Sensex fell by 509.25 points (-0.9%) to close at 82,543.29, remaining 4.38% below its 52-week high of 86,159.02. Despite the Sensex trading below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed signals for the broader market.
International Combustion’s share price is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the sustained downward momentum. The stock’s 52-week high was Rs.1,049, highlighting the extent of the recent decline, with a one-year return of -46.46%, significantly underperforming the Sensex’s positive 10.87% return over the same period.
Financial Metrics and Profitability Concerns
The company’s financial performance has been under pressure, as reflected in its recent quarterly results. For the quarter ended December 2025, International Combustion reported a net loss after tax (PAT) of Rs. -2.65 crores, a steep decline of 170.7% compared to the previous period. Net sales also fell by 12.80% to Rs.72.19 crores, while the return on capital employed (ROCE) dropped to a low of 9.34% in the half-year period.
Return on equity (ROE) remains subdued at 8.41%, indicating limited profitability relative to shareholders’ funds. This low ROE has contributed to the company’s downgrade in Mojo Grade from Sell to Strong Sell as of 4 Nov 2025, with a current Mojo Score of 28.0. The market capitalisation grade stands at 4, reflecting the company’s relatively modest size within the industrial manufacturing sector.
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Long-Term Underperformance and Valuation
International Combustion’s stock has consistently underperformed not only the Sensex but also the BSE500 index over multiple time frames, including the last three years, one year, and three months. This persistent underperformance reflects challenges in sustaining growth and profitability within its industrial manufacturing niche.
Despite the subdued financial metrics, the company maintains a low average debt-to-equity ratio of 0.06 times, indicating a conservative capital structure with limited leverage. The stock’s price-to-book value ratio stands at 0.8, suggesting an attractive valuation relative to its book value. However, this valuation is at a premium compared to the historical averages of its peers, which may reflect market caution given the company’s recent financial results and stock performance.
Profitability has also deteriorated significantly, with profits falling by 71.9% over the past year, further weighing on investor sentiment and contributing to the stock’s decline.
Shareholding and Sectoral Position
The majority shareholding remains with the company’s promoters, providing a stable ownership structure. International Combustion operates within the industrial manufacturing sector, a segment that has faced varied headwinds in recent months, including fluctuating demand and cost pressures. The company’s current market cap grade of 4 places it in the micro-cap category, which often experiences higher volatility compared to larger industrial peers.
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Summary of Key Metrics
To summarise, International Combustion (India) Ltd’s recent stock performance reflects a combination of subdued profitability, declining sales, and a challenging sectoral environment. The stock’s fall to Rs.425 marks a new 52-week low, with a cumulative loss of nearly 47% over the past year. The company’s financial indicators, including a low ROE of 8.41%, negative quarterly PAT, and a ROCE of 9.34%, highlight ongoing pressures on earnings and capital efficiency.
While the company’s low debt levels and price-to-book ratio below 1.0 suggest some valuation support, the overall trend remains negative as the stock trades below all major moving averages and continues to underperform its sector and broader market indices.
Market Sentiment and Broader Implications
The industrial manufacturing sector has faced headwinds amid fluctuating demand and cost dynamics, which have impacted companies like International Combustion. The stock’s downgrade to a Strong Sell grade by MarketsMOJO on 4 Nov 2025 reflects these challenges and the company’s deteriorating financial health. The Mojo Score of 28.0 further underscores the cautious stance on the stock’s near-term prospects.
Investors and market participants will continue to monitor the company’s financial disclosures and sector developments closely as the stock remains at a critical low price point.
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