1. At a Glance – The Belt That’s Quietly Printing Money
Market Cap: ₹540 Cr
Current Price: ₹84.9
Stock P/E: 6.96
ROE: 26.4%
ROCE: 27.1%
Return (1 Year): 30.6%
Return (3 Months): -6.92%
Debt: ₹118 Cr
Dividend Yield: 0.88%
Ladies and gentlemen, meet the most boring-sounding company that just delivered a ₹29.7 crore quarterly profit on ₹35.3 crore sales. Yes, you read that right. A conveyor belt manufacturer making profit margins that some tech startups would kill for.
International Conveyors Ltd is trading at a P/E of 6.96 while delivering 26%+ ROE and 27%+ ROCE. Either the market is asleep… or it knows something we don’t.
And here’s the twist — quarterly sales grew 35.4% YoY, while profit grew 48.4%. But hold your horses. A large chunk of earnings includes other income of ₹70.7 crore in TTM.
So is this a conveyor belt business? Or is it a well-dressed investment portfolio with a factory attached?
Curious? Good. Let’s roll.
2. Introduction – The Company That Mines Coal Without Mining Coal
Imagine selling something so essential that if it stops working, the entire coal supply chain panics.
That’s what ICL does.
They don’t mine coal.
They don’t produce cement.
They don’t drill potash.
They just make the belts that carry it.
And guess what? They are India’s only listed PVC solid woven conveyor belting manufacturer.
This is not glamorous business. This is industrial plumbing of the mining world.
But here’s where it gets interesting:
- 62% revenue from exports
- 85% revenue linked to coal industry
- 6 customers contribute 71% of revenue
- Order book of ₹15.13 crore
Now let me ask you:
Would you be comfortable if 71% of your income came from just six people?
Or are we looking at a niche monopoly with high entry barriers?
Let’s dig.
3. Business Model – WTF Do They Even Do?
ICL manufactures PVC fire-resistant, anti-static solid woven conveyor belts.
Translation:
They make belts that don’t catch fire inside coal mines. Because that would be… explosive.
They operate:
- 2 plants in Aurangabad (7 lakh meters
