At a Glance

ICL is India’s only listed PVC conveyor belt manufacturer — and no, we’re not talking escalators. We’re talking coal mines, potash, and salt giants using ICL’s belts to move millions of tons. Oh, and while the operating business chugs along, their treasury throws in bonus net profits just for fun.

1. ⚙️ WTF Do They Even Do?

International Conveyors Ltd (ICL):

• Specializes in solid woven PVC conveyor belts, mainly for mining, power, salt, and material handling sectors.
• Also trades in steel cord conveyor belts, fasteners, and belt accessories.
• Operates a treasury business: parks funds in mutual funds, stocks, inter-corporate deposits, and sometimes generates more profit from it than the core business. Yes, that’s legal.

🧪 Summary:

This is a hybrid: 50% industrial, 50% finance bro.

2. 🧾 Financials – Belted But Profitable

🧠 Takeaway:

• Sales dipped post FY23, but profits exploded thanks to treasury gains.
• Core OPM holds at 14–16% — not bad for a niche cap goods player.
• Consistent double-digit EPS and excellent capital efficiency.

3. 💰 Valuation – Still Cheap or Fully Priced?

🧮 Fair Value Range:

Let’s value it two ways:

1. Core Business (EPS ₹7) x 10 = ₹70
2. Treasury kicker (EPS ₹7.5) x 8 = ₹60

👉 Combined FV = ₹130 – ₹155

So at ₹93, it’s undervalued by ~30–40% if earnings hold.

4. 🧨 What’s Cooking – Updates & Triggers

• 🛒 Promoter Buying: Disclosures show open market accumulation even in June 2025.
• 🔄 Q1 Update Coming: Trading window closed June 30 → Results expected mid-July.
• 🧾 Other Income Spike: ₹105 Cr in FY25 — likely MF/unrealized treasury gains. Worth tracking.
• 📦 Low FII/DII presence: Retail-dominated. But that also means room for re-rating on discovery.

5. 🧾 Balance Sheet – How Much Debt, How Many Dreams?

🔍 More than 58% of assets are parked in financial investments. Core operations remain capital-light.

6. 💸 Cash Flow – Sab Number Game Hai

🎯 Steady operating cash, and investment flow is flexible — because they’re sitting on a treasury business.

7. 📊 Ratios – Sexy or Stressy?

📌 High returns, low debt, clean ops. Only concern = treasury dependence for EPS.

8. 💼 P&L Breakdown – Show Me the Money

• Core Operating Profit: ₹21 Cr (FY25)
• Other Income: ₹105 Cr
• Net Profit: ₹92 Cr

⚠️ Over 70% of FY25 PAT = other income. If markets tank, so does PAT. But if treasury performs, this stock becomes a stealth wealth machine.

9. 👥 Shareholding Trends – Promoters Belting Up?

✅ Clear sign: Promoters increasing stake through buybacks & open market = confidence signal.

🧠 EduInvesting Verdict™

“International Conveyors is that unassuming cousin who runs a belt business but secretly trades stocks better than your PMS guy. It’s cheap, cash-rich, and returns-focused — and while everyone’s busy chasing Kaynes and Syrma, this one’s quietly outperforming.”

🚩 Risks:

• One bad year in markets = drop in ‘Other Income’.
• Sales haven’t grown fast — long-term story needs core revenue boost.

🎯 Fair Value Range = ₹130 – ₹155

🧤 Accumulate below ₹100
🎯 Ride till treasury performance holds or P/E expands to 10+

✍️ Written by Prashant | 📅 27 June 2025
Tags: International Conveyors, stock analysis, PVC conveyor belt company, smallcap industrial stocks, other income multibaggers, ROE stocks under ₹100, ICL vs Tega, mining belt suppliers, Indian conveyor stocks