Promoter Shareholding in International Conveyors Soars from 37.39% to 70.65%

Business Overview

International Conveyors Limited (ICL) specialises in manufacturing and promoting fire retardant, anti-static conveyor belting made from solid woven fabric and reinforced with polyvinyl chloride (PVC) impregnation and covering. 

It operates in three primary business segments that are Conveyor Belting, Wind Energy, and Trading Goods. The Conveyor Belting segment focuses on producing and selling PVC Conveyor Belting, which serves as an essential link in the process of conveying semi-finished goods to the final production stage. 

In addition to catering to Indian requirements with products ranging from type-3 to type-6, ICL also offers a broader range of type-3 to type-12 belts suitable for international markets.

These conveyor belts, due to their customizable cover thickness and durable solid woven carcass, are well-suited for transporting various materials such as coal, potash, phosphate, fertilizer, clay, gypsum, and salt.

Besides its core business of conveyor belting, it is actively involved in the generation, supply, and sale of wind power (electricity) through its Wind Energy segment. Furthermore, the company is engaged in trading goods too.

Promoters holding

A close examination of the company’s shareholding pattern reveals that the promoters have been actively repurchasing shares from the secondary market. In FY17, the promoter holding stood at 37.39%, but it has significantly increased to 70.65% over time. Notably, the company has consistently bought back shares from the secondary market each year without creating a gap, albeit in smaller portions, consistently following this trend.

Financial Performance

If we check the company’s financials, annual revenue experienced an increase of 4.8%, from Rs 205 Crore to Rs 215 Crore. The operating profit of the company stands at Rs 29 Crore, accompanied by an operating profit margin of 14%. Furthermore, the net profit of the company amounts to Rs 29 Crore.

The company’s return on capital employed (ROCE) and return on equity (ROE) are reported as 15.9% and 13.3%, respectively.

Share Performance

Today, the stock commenced trading at Rs 77.05, almost flat from the previous day’s closing price of Rs 77.62. The shares of the company concluded the day at Rs 78.50 on BSE. The stock’s 52-week highs and lows are Rs 83.95 and Rs 40, respectively. Currently, its market capitalization stands at Rs 529.88 Crore.

Over the past three months, the stock has delivered an impressive return of 33%, while in the last three years, it has generated a multibagger return of 212%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.