International Conveyors Limited

Industrials — Specialty Industrial Machinery · NSE

₹77.41−₹3.83 (−4.71%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of International Conveyors Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

International Conveyors Limited manufactures and markets PVC conveyor belting products in India and internationally. It operates through Conveyor Belting, Wind Energy, Trading Goods, and Treasury segments.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees88

Annual revenue₹213 Cr

How does it make money?

Turns over ₹213 Cr a year. Of every ₹100 of sales, about ₹32 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 88 employees supports ₹2.42 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.42 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 16.1% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -1% while net margin moved +140% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-1%

Margin effect+140%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.84 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

84/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

3.6x

3Y Median

8.4x

40 monthly readings · mean 11.0x · range 4.2x–22.8x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 57% below its 3y median of 8.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 95% below the peer median of 66.2x.

vs. its own history

Cheap

8.4x median over 40 months · -57%

vs. sector peers

Cheap

66.2x median of 4 peers · -95%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.2x

PEG

0.11

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 19.9% to 28.5% over 3 years.
Cash generation is improving
Free cash flow is up 893% over 3 years.
High return on capital employed
ROCE of 20.8% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 52% against revenue up -1% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 19.9% to 28.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 57% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 95% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹31 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 52% against revenue up -1%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 26%✓ 28.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹31 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 18%✓ 20.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 8.4x✓ 3.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

10 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹494 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.6x

Cheap

Cheap against the generic band

P/B Ratio

1.16x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹21.3

Profitable

Profitable on a per-share basis

ROE

16.1%

Strong

Strong capital efficiency

ROCE

20.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

-0.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

127.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.65%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹31 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

18.9%

Good

Healthy core-business profitability

Net Margin

63.9%

Good

Strong bottom-line conversion

Current Ratio

4.92

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.84

Market-like

Moves roughly in line with the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

79.4 / 78.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹214 Cr	₹134 Cr	₹151 Cr	₹213 Cr	-0.3%
EBITDA	₹43 Cr	₹34 Cr	₹41 Cr	₹61 Cr	+12.3%
EBITDA Margin	19.9%	25.6%	26.8%	28.5%	—
PAT (Net Profit)	₹29 Cr	₹62 Cr	₹92 Cr	₹68 Cr	+33.5%
EPS	₹4.28	₹9.82	₹14.47	₹10.74	+35.9%
ROE	13.4%	22.9%	25.3%	16.1%	—
ROCE	18.9%	30.3%	32.0%	20.8%	—
Total Debt	₹65 Cr	₹125 Cr	₹86 Cr	₹73 Cr	+4.2%
Free Cash Flow	₹3 Cr	₹11 Cr	₹15 Cr	₹31 Cr	+114.9%

🟡 Revenue has been broadly flat over 3 years (-0.3% a year).

🟢 EBITDA has grown at 12.3% a year over 3 years.

🟢 EBITDA Margin has risen from 19.9% to 28.5% over 3 years (+8.5 pts).

🟢 PAT (Net Profit) has grown at 33.5% a year over 3 years.

🟢 EPS has grown at 35.9% a year over 3 years.

🟢 ROE has risen from 13.4% to 16.1% over 3 years (+2.8 pts).

🟢 ROCE has risen from 18.9% to 20.8% over 3 years (+1.9 pts).

🔴 Total Debt has grown at 4.2% a year over 3 years.

🟢 Free Cash Flow has grown at 114.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹569 Cr

Total Liabilities

₹144 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹35 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.2%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

17 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 positive1 mixed3 general

International Conveyors sets Sept 17 record date for FY26 dividend

scanx.trade, 04 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

International Conveyors: Best Stock in Its Sector? Key Metrics

Univest, 29 Sept

International Conveyors Acquisition; Shares Rise 0.27%

HDFC Sky, 13 MayM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

International Conveyors Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

International Conveyors Ltd is Rated Sell

MarketsMojo, 03 Oct

International Conveyors Q1FY27 net profit rises 130% to ₹1,202 crore

scanx.trade, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-0.4%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑