Stock Performance and Market Context
The stock recorded an intraday low of Rs.554, representing a 2.4% drop on the day, despite outperforming its sector by 1.46%. This new low comes after two consecutive days of decline, although the stock showed some recovery by gaining on the third day. Currently, International Combustion is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend.
In contrast, the broader market has experienced mixed movements. The Sensex opened flat but later declined by 338.21 points, closing at 82,869.17, down 0.45%. The index remains 3.97% below its 52-week high of 86,159.02 and has seen a 3.37% loss over the past three weeks. Notably, the Sensex is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating some underlying market resilience.
Over the last year, International Combustion’s stock has underperformed significantly, delivering a negative return of 30.90%, while the Sensex has gained 7.52% over the same period. The stock’s 52-week high was Rs.1,049, highlighting the extent of the decline.
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Financial Performance Highlights
The company’s recent quarterly results have been subdued. The profit after tax (PAT) for the quarter stood at Rs.0.12 crore, reflecting a decline of 42.9% compared to the previous period. This sharp fall in profitability has contributed to the stock’s weak performance.
Return on Capital Employed (ROCE) for the half-year period is at a low 9.34%, indicating limited efficiency in generating returns from capital invested. Meanwhile, the Return on Equity (ROE) remains modest at 9.2%, which, while not alarming, suggests restrained profitability relative to shareholder equity.
Despite these challenges, the company maintains a low average debt-to-equity ratio of 0.06 times, reflecting a conservative capital structure with limited leverage. This low indebtedness may provide some financial stability amid the current market pressures.
Valuation metrics show the stock trading at a Price to Book Value of 1, which is considered fair and in line with its peers’ historical averages. The Price/Earnings to Growth (PEG) ratio stands at 1.3, indicating that the stock’s valuation is somewhat aligned with its earnings growth rate, which has increased by 8.6% over the past year despite the stock’s negative return.
Shareholding and Market Grade
The majority ownership of International Combustion rests with promoters, which often suggests a stable controlling interest. However, the company’s Mojo Score currently stands at 37.0, with a Mojo Grade of Sell. This represents an upgrade from a previous Strong Sell rating as of 4 November 2025, reflecting a slight improvement in the company’s outlook, though the overall sentiment remains cautious.
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Sector and Industry Positioning
International Combustion operates within the Industrial Manufacturing sector, a space that has seen varied performance across companies. While the broader BSE500 index has generated returns of 6.08% over the last year, International Combustion’s negative return of 30.90% highlights its relative underperformance within the sector and market.
The stock’s current trading levels, well below all major moving averages, reflect investor caution and the impact of recent financial results. The gap between the 52-week high of Rs.1,049 and the current low of Rs.554 underscores the volatility and challenges faced by the company in maintaining market confidence.
Despite the subdued price action, the company’s low leverage and fair valuation metrics suggest a degree of financial prudence. However, the decline in quarterly profits and low capital returns remain key factors influencing the stock’s performance.
Summary of Key Metrics
To summarise, International Combustion (India) Ltd’s stock has reached a 52-week low of Rs.554, down 2.4% intraday and underperforming the sector by 1.46%. The company’s PAT has declined by 42.9% in the latest quarter, with ROCE at 9.34% and ROE at 9.2%. The stock trades below all major moving averages and has a Mojo Grade of Sell, upgraded from Strong Sell in November 2025. Its low debt-to-equity ratio of 0.06 times and Price to Book Value of 1 indicate a conservative financial structure and fair valuation, despite the negative stock returns of 30.90% over the past year.
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