Stock Price Movement and Market Context
On 21 Nov 2025, International Combustion (India) recorded an intraday low of Rs.610, representing a decline of 2.06% for the day. Despite this, the stock outperformed its sector by 1.01% during the trading session. The price currently remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend over multiple time frames.
The broader market, represented by the Sensex, opened lower at 85,347.40 points, down 285.28 points or 0.33%, and was trading at 85,393.92 points at the time of reporting, a decline of 0.28%. The Sensex remains close to its 52-week high of 85,801.70, just 0.48% away, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish market environment contrasting with the stock’s performance.
Performance Over the Past Year
International Combustion (India) has experienced a negative return of 33.48% over the last twelve months, a stark contrast to the Sensex’s positive return of 10.67% and the BSE500’s 8.93% gain over the same period. This divergence highlights the stock’s relative underperformance within the industrial manufacturing sector and the broader market.
The stock’s 52-week high was Rs.1,049, indicating a substantial decline from its peak to the current low of Rs.610. This downward movement reflects a challenging period for the company’s share price, with the current level representing a significant valuation reset.
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Financial Metrics and Profitability
The company’s quarterly profit after tax (PAT) stood at Rs.0.12 crore, reflecting a decline of 42.9% compared to the previous corresponding period. This subdued profit figure contributes to the cautious market sentiment surrounding the stock.
Return on Capital Employed (ROCE) for the half-year period is reported at 9.34%, which is among the lowest levels observed for the company. Meanwhile, the Return on Equity (ROE) is at 9.2%, suggesting moderate efficiency in generating returns from shareholders’ equity.
Despite the negative price performance, the company’s profits have shown an increase of 8.6% over the past year, indicating some operational resilience amid the challenging market conditions. The Price to Book Value ratio stands at 1.1, which places the stock at a fair valuation relative to its peers’ historical averages.
Balance Sheet and Shareholding
International Combustion (India) maintains a low average debt-to-equity ratio of 0.06 times, reflecting a conservative capital structure with limited reliance on debt financing. This low leverage may provide some stability in volatile market conditions.
The majority shareholding is held by promoters, which often suggests a degree of continuity in management and strategic direction.
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Sector and Industry Overview
Operating within the industrial manufacturing sector, International Combustion (India) faces a competitive environment where market dynamics and economic cycles heavily influence performance. The sector itself has seen mixed results, with some companies benefiting from infrastructure growth and others impacted by subdued demand.
The stock’s recent price action and valuation metrics suggest that it is trading at levels reflecting the current market assessment of its financial and operational standing.
Summary of Current Concerns
The stock’s fall to Rs.610, its lowest level in 52 weeks, is underpinned by a combination of factors including subdued quarterly profits, low returns on capital, and a significant underperformance relative to benchmark indices. The persistent trading below all major moving averages further emphasises the prevailing downward momentum.
While the company’s balance sheet shows low leverage and a fair valuation compared to peers, these factors have not yet translated into positive price movement in the stock market.
Recent Trading Activity
After three consecutive days of decline, the stock showed some recovery on the day it hit the 52-week low, indicating a possible short-term pause in the downward trend. However, the overall trend remains below key technical levels, which may continue to influence investor sentiment.
Conclusion
International Combustion (India) has experienced a notable decline in its share price over the past year, culminating in a fresh 52-week low of Rs.610. The stock’s performance contrasts with the broader market’s positive trajectory, reflecting company-specific challenges in profitability and returns. The current valuation and financial metrics provide a comprehensive picture of the company’s standing within the industrial manufacturing sector as of late 2025.
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