Stock Price Movement and Market Context
On 28 Nov 2025, International Combustion (India) recorded an intraday low of Rs.595, representing a 2.29% decline during the trading session. The stock closed with a day change of -0.99%, underperforming its sector by 1.09%. This price level is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In contrast, the Sensex opened flat but moved into positive territory, trading at 85,762.10 points, a marginal 0.05% gain and just 0.34% shy of its 52-week high of 86,055.86. The Sensex's upward trend is supported by its position above the 50-day moving average, which itself is above the 200-day moving average, indicating a bullish market environment. Mega-cap stocks have been leading this positive market movement, further emphasising the divergence in International Combustion's performance.
One-Year Performance Comparison
Over the last twelve months, International Combustion (India) has experienced a price decline of 35.15%, a stark contrast to the Sensex's 8.50% gain and the BSE500's 5.90% return. This underperformance highlights the stock's relative weakness within the industrial manufacturing sector and the broader market.
The stock's 52-week high was Rs.1,049, indicating a substantial reduction in value over the year. This decline reflects a combination of factors affecting the company's financial results and market sentiment.
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Financial Performance Highlights
The company reported flat results for the quarter ending September 2025, with a Profit After Tax (PAT) of Rs.0.12 crore, reflecting a decline of 42.9% compared to the previous period. This contraction in quarterly profitability has contributed to the subdued market response.
Return on Capital Employed (ROCE) for the half-year period stands at 9.34%, which is the lowest recorded level for the company in recent times. This metric indicates the efficiency with which the company is utilising its capital base to generate earnings.
Return on Equity (ROE) is reported at 9.2%, suggesting moderate returns for shareholders relative to equity invested. Despite these figures, the company maintains an attractive valuation with a Price to Book Value ratio of 1.1, which is in line with its peers' historical averages.
Debt and Shareholding Structure
International Combustion (India) has maintained a low average Debt to Equity ratio of 0.06 times, indicating limited reliance on debt financing. This conservative capital structure may provide some stability amid fluctuating earnings.
The majority shareholding remains with the promoters, reflecting a concentrated ownership structure that could influence strategic decisions and company direction.
Profitability Trends and Valuation Metrics
While the stock price has declined by over 35% in the past year, the company’s profits have shown an increase of 8.6% during the same period. This divergence between earnings growth and stock price performance suggests that market valuation has not fully reflected the profit trends.
The Price/Earnings to Growth (PEG) ratio stands at 1.4, which provides a measure of valuation relative to earnings growth. This figure indicates that the stock is trading at a level that factors in moderate growth expectations.
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Summary of Current Position
International Combustion (India) is currently trading well below its key moving averages and has reached a new 52-week low of Rs.595. The stock’s performance over the past year has lagged behind both the broader market and its sector peers, despite some growth in profitability metrics.
The company’s low debt levels and promoter majority ownership remain notable features of its financial profile. However, the recent quarterly results and half-year returns on capital have reflected subdued earnings efficiency.
Meanwhile, the broader market environment remains positive, with the Sensex approaching its own 52-week high and supported by strong mega-cap performance. This contrast highlights the distinct challenges faced by International Combustion (India) within the industrial manufacturing sector.
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