International Conveyors Ltd Q1FY26 – When Conveyor Belts Print More Cash Than Coal Mines
1. At a Glance
International Conveyors Ltd (ICL), a midcap nobody noticed until it started behaving like a treasury desk with a conveyor-belt side hustle, closed Q1FY26 at ₹98.8 per share, valuing itself at ₹625 crore. Three-month return? A boring 3.5%. Six-month return? A juicy 40%. The stock trades at a P/E of 5.6, which in Dalal Street lingo means “either dirt cheap or hiding skeletons.” With ROE at 26.4% and ROCE at 27.1%, the company is making more on its belts than most NBFCs on their loans. Sales in the quarter were ₹35.5 crore, down 12.2% YoY, but PAT shot up 63% to ₹52.1 crore—thanks to other income that could rival LIC’s portfolio. And let’s not ignore: debt of just ₹86 crore, promoter holding nudging 70%, and dividend yield of 0.76%.
2. Introduction
Picture this: a conveyor belt, rolling endlessly in a dark coal mine. On one side, black dust. On the other, a company minting cash and sprinkling dividends. That’s ICL for you. Founded in 1973, this Aurangabad-to-Falta SEZ veteran is India’s only listed PVC conveyor belting player.
But here’s the twist: while they sell belts to coal miners and potash kings, they’ve also turned into a quasi-mutual fund. Roughly 27% of FY24 revenue came not from sweaty mining clients but from “profit on current investments.” Translation: these guys are part belt-makers, part stock traders.
The irony? Mining is cyclical, but their “other income” looks like Reliance Jio—growing without sweat. Investors love the treasury game until it backfires. One bad bet in La Opala or JSW One Platforms, and suddenly your conveyor belt looks like a treadmill—lots of movement, going nowhere.
Still, give credit: they’ve got contracts stretching 5–7 years, dual-stage approvals that scare off new entrants, and a global client list from Coal India to Nutrien. In short, ICL is not just moving coal; it’s moving money.
3. Business Model – WTF Do They Even Do?
Okay, lazy investor, listen up. ICL makes PVC solid-woven conveyor belts. Imagine giant black seatbelts for coal, salt, and cement. Mines can’t run without them, which makes ICL the plumber of industrial capitalism.
They don’t just sell belts. They:
Manufacture Type-3 to Type-18 belts, up to 3150 kN/m strength, 1800 mm wide.
Trade steel cord conveyor belts and accessories.
Play distributor for Mato Industries’ belt gadgets (cutters, fasteners, lacing machines).
Run a treasury segment, where they buy shares of Natco, Religare, CARE Ratings, and half of Dalal Street.
Even dabble in wind energy with 5 turbines generating ~109 lakh KWH. Think of it as greenwashing with actual windmills.
Clients? Abroad it’s Mosaic, Nutrien, and Glencore. Domestically, Tata Steel, Shree Cement, and Coal India. If your belt snaps underground, it’s either tragedy or comedy. Luckily for ICL, both scenarios mean repeat business.
So yes, they sell belts. But really, they’ve belted together a portfolio of coal, wind, and equities.
4. Financials Overview
Quarterly Snapshot (₹ crore)
Source table
Metric
Latest Qtr (Q1FY26)
Same Qtr Last Yr
Prev Qtr
YoY %
QoQ %
Revenue
35.5
40.4
55.0
-12.2%
-35.5%
EBITDA
5.1
6.0
11.0
-15.0%
-53.6%
PAT
52.1
31.9
13.0
+63.4%
+300%
EPS (₹)
8.2
5.0
2.1
+64%
+290%
Annualised EPS = ₹8.2 × 4 = ₹32.8 → At CMP ₹98.8, the P/E = 3.0. Screener’s 5.6 looks generous; reality is cheaper than your neighborhood vada pav.
Commentary: Revenue is sliding, EBITDA is limping, but PAT is flying like Rajnikanth’s cigarette flip. Why? “Other income” tsunami. This isn’t conveyor belts—this is portfolio magic.
Question: would you trust a conveyor belt company to manage your stock picks better than your broker?
5. Valuation Discussion – Fair Value Range
Three lenses, because why not:
(i) P/E Method
Annualised EPS: ₹32.8
Assign conservative multiples: 6× to 10× (sector trades at ~35×, but let’s not get carried away).
Fair value range = ₹197 to ₹328.
(ii) EV/EBITDA Method
EBITDA FY25 TTM = ₹21 crore.
EV = ₹702 crore. EV/EBITDA = 33× (ouch).
If re-rated to 10×–15× fair multiple → EV range = ₹210–315 crore → per share value = ₹33–₹50.
