Stock Price Movement and Market Context
On 20 Feb 2026, International Combustion (India) Ltd’s stock touched an intraday low of Rs.435, representing a 3.47% drop for the day. Despite this, the stock managed to outperform its sector by 0.91% and reversed a nine-day consecutive decline by gaining slightly later in the session. However, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the broader market showed resilience on the same day. The Sensex recovered sharply after a negative opening, closing at 82,842.90 points, up 0.42%, and just 4% shy of its 52-week high of 86,159.02. Mega-cap stocks led the rally, while the Sensex traded below its 50-day moving average but maintained a positive trend with the 50DMA above the 200DMA.
Long-Term and Recent Performance
Over the past year, International Combustion (India) Ltd’s stock has declined by 43.75%, significantly underperforming the Sensex, which gained 9.38% during the same period. The stock’s 52-week high was Rs.1,049, highlighting the steep fall to the current low. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over the last three years, one year, and three months.
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Financial Metrics Highlighting Performance Concerns
The company’s financial indicators reveal several areas of concern. The Return on Equity (ROE) stands at a modest 8.41%, reflecting limited profitability relative to shareholders’ funds. This figure is below industry expectations and signals challenges in generating efficient returns.
Recent quarterly results for December 2025 further underline the difficulties faced by the company. The Profit After Tax (PAT) was negative at 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) for the half-year was at a low 9.34%, indicating subdued capital efficiency.
Valuation and Debt Profile
Despite the weak profitability, International Combustion (India) Ltd maintains a low average debt-to-equity ratio of 0.06 times, suggesting limited leverage and a conservative capital structure. The company’s Price to Book Value ratio is 0.8, which implies a fair valuation relative to its net asset value, although it trades at a premium compared to peers’ historical averages.
However, the stock’s profitability has deteriorated sharply over the past year, with profits falling by 71.9%. This decline in earnings has contributed to the negative sentiment and the stock’s slide to its current 52-week low.
Shareholding and Market Grade
The majority ownership of International Combustion (India) Ltd remains with promoters, maintaining a stable shareholding structure. The company’s overall market capitalisation grade is rated 4, reflecting its micro-cap status and associated market risks.
On 4 Nov 2025, the company’s Mojo Grade was downgraded from Sell to Strong Sell, with a current Mojo Score of 26.0. This downgrade reflects the deteriorating financial health and market performance, signalling caution in the stock’s outlook.
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Summary of Key Performance Indicators
To summarise, International Combustion (India) Ltd’s stock has experienced a significant decline over the past year, culminating in a new 52-week low of Rs.435. The company’s financial results show reduced profitability, with negative quarterly earnings and falling sales. Its low ROE and ROCE figures highlight challenges in generating returns and utilising capital effectively.
While the company maintains a low debt level and a fair valuation based on price-to-book metrics, the overall trend remains negative. The stock’s downgrade to a Strong Sell grade by MarketsMOJO reflects these ongoing concerns and the stock’s underperformance relative to broader market indices and sector peers.
Market and Sector Comparison
Compared to the broader industrial manufacturing sector and the Sensex benchmark, International Combustion (India) Ltd’s performance has been notably weaker. The Sensex’s positive trajectory, nearing its 52-week high, contrasts with the company’s persistent downward trend. This divergence underscores the stock’s relative weakness within its sector and the wider market.
Technical Indicators and Trading Trends
From a technical perspective, the stock’s position below all major moving averages suggests a sustained bearish trend. The recent intraday low of Rs.435 and the nine-day consecutive fall prior to the slight rebound indicate persistent selling pressure. Despite a minor outperformance against the sector on the day of the new low, the overall technical signals remain subdued.
Conclusion
International Combustion (India) Ltd’s fall to a 52-week low of Rs.435 reflects a combination of weak financial results, subdued profitability, and challenging market conditions. The company’s low returns on equity and capital employed, alongside declining sales and negative quarterly profits, have contributed to the stock’s underperformance. While the company’s conservative debt profile and fair valuation provide some stability, the prevailing trends indicate continued caution in assessing the stock’s near-term trajectory.
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