Stock Performance and Market Context
On 9 Feb 2026, International Combustion (India) Ltd (Stock ID: 926181) opened with a gap down of 2.49%, continuing a downward trajectory that culminated in an intraday low of Rs.494. This represents a sharp 10.96% decline on the day, with the stock closing near this low point. The day’s performance lagged the industrial manufacturing sector by 10.48%, highlighting relative weakness.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex opened higher at 84,177.51, gaining 0.71% before settling at 83,954.51, still up 0.45% on the day. The Sensex has been on a three-week consecutive rise, up 2.96% over that period, supported by mega-cap stocks.
While the Sensex remains 2.63% below its 52-week high of 86,159.02, International Combustion’s stock has declined by 32.66% over the past year, significantly underperforming the Sensex’s 7.83% gain during the same period. The stock’s 52-week high was Rs.1,049, underscoring the extent of the recent decline.
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Financial Metrics and Recent Results
The company reported negative quarterly results for the period ending December 2025, with a net profit after tax (PAT) of Rs. -2.65 crores, representing a decline of 170.7% compared to the previous quarter. Net sales also fell by 12.80% to Rs.72.19 crores, indicating a contraction in revenue generation.
Return on Capital Employed (ROCE) for the half-year stood at a low 9.34%, reflecting subdued capital efficiency. Return on Equity (ROE) was recorded at 9.2%, which, while modest, contributes to an attractive valuation given the stock’s price-to-book value of 1. The company’s debt-to-equity ratio remains low at an average of 0.06 times, suggesting limited leverage risk.
Despite the negative stock performance, the company’s profits have increased by 8.6% over the past year, resulting in a price/earnings to growth (PEG) ratio of 1.3. However, this has not translated into positive returns for shareholders, as the stock has underperformed the BSE500 index over the last three years, one year, and three months.
Shareholding and Market Sentiment
The majority shareholding remains with promoters, maintaining a stable ownership structure. The company’s Mojo Score stands at 28.0, with a Mojo Grade of Strong Sell as of 4 Nov 2025, an upgrade from the previous Sell rating. The market capitalisation grade is 4, indicating a relatively small market cap within its sector.
On the day of the new low, the stock’s day change was -9.91%, reflecting significant selling pressure. This performance is in stark contrast to the broader market’s positive momentum, underscoring the stock’s current challenges within the industrial manufacturing sector.
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Technical and Valuation Considerations
The stock’s position below all major moving averages signals a continued bearish trend, with no immediate technical support levels evident near the current price. The 52-week low of Rs.494 represents a critical price point, reflecting investor caution amid the company’s recent financial performance.
Valuation metrics suggest the stock is trading at a fair value relative to its peers’ historical averages, supported by its low price-to-book ratio and moderate ROE. However, the negative quarterly earnings and declining sales have weighed heavily on market sentiment, contributing to the stock’s underperformance.
While the company’s low leverage and stable promoter holding provide some balance, the overall financial and market indicators have resulted in a strong sell rating, reflecting the challenges faced by International Combustion (India) Ltd in the current industrial manufacturing environment.
Broader Market Environment
The industrial manufacturing sector has experienced mixed performance, with International Combustion (India) Ltd notably lagging behind sector peers. The Sensex’s recent gains have been driven primarily by mega-cap stocks, which have not translated into positive momentum for this stock.
The divergence between the stock’s performance and the broader market highlights sector-specific pressures and company-specific factors that have influenced investor sentiment and valuation.
Summary
International Combustion (India) Ltd’s stock decline to Rs.494 marks a significant 52-week low, reflecting a combination of subdued financial results, declining sales, and technical weakness. Despite some positive profit growth over the past year and a conservative capital structure, the stock has underperformed both its sector and the broader market. The strong sell rating and low Mojo Score underscore the challenges faced by the company in the current market environment.
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