Stock under ₹70 jumps after acquiring 3,44,668 shares in ethanol company

During Friday’s trading session, the shares of India’s only listed player in PVC Conveyor Belting moved up by nearly 2.5 percent on BSE, after the company announced acquiring stake in ethanol company

Price Movement

With a market cap of Rs. 447 crores, the shares of International Conveyors Limited (ICL) hit an intraday high at Rs. 67.83, up by around 2.5 percent, as compared to its previous closing price of Rs. 66.15. The stock has delivered negative returns of nearly 14 percent over a one-year period, as well as around 22 percent returns year-to-date.

What’s the News

According to the latest exchange filings, International Conveyors Limited has acquired 3,44,668 equity shares of Gulshan Polyols Limited for a total cash consideration of Rs. 6.118 crore. The target company operates in other Agricultural Products industry, and the acquisition has been categorized for investment purposes.

About the Target Entity

Gulshan Polyols Limited (GPL) is a multi-location, multi-product manufacturing company and is a leading manufacturer of grain and mineral-based specialty chemicals in India. It is engaged in the business of manufacturing ethanol & specialty chemicals from grain and minerals, from multiple facilities set up across India.

GPL is a publicly listed company, with its stock rising nearly 5 percent on the BSE to Rs. 186 on Friday, with a market capitalization of Rs. 1,137 crore. For FY24, Gulshan Polyols reported a turnover of Rs. 1,378 crore, marking an increase from Rs. 1,179.7 crore in FY23 and Rs. 1,100.7 crore in FY22.

Also read: Stock in focus after Morgan Stanley Asia, Kotak Mahindra Life & others acquired 55 lakh shares via block deal

Previous Acquisition

26th March: International Conveyors Limited has acquired 48,213 equity shares of TD Power Systems Limited for a total cash consideration of Rs. 1.996 crore. The target company operates in the Heavy Electrical Equipment sector, and the acquisition has been categorized for investment purposes.

TD Power Systems Limited is a publicly listed company engaged in the business of manufacturing AC generators and electric motors for various applications with reliable & efficient power solutions up to 200 MW, which are specifically designed and tailor-made to suit the needs of the customers based on their requirements and specifications. For FY24, TD Power Systems reported a turnover of Rs. 1,000.5 crore, marking an increase from Rs. 872.3 crore in FY23 and Rs. 797.4 crore in FY22.

Financial Performance

ICL reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 16 percent, rising from Rs. 22.6 crores in Q3 FY24 to Rs. 26 crores in Q3 FY25. Similarly, during the same period, the company’s net profit increased marginally from Rs. 19.3 crores to Rs. 20 crores, representing a growth of around 3.6 percent YoY.

Key Financial Ratios

In terms of key financial metrics, International Conveyors has a Return on Equity (RoE) of 23.8 percent and a return on capital employed (RoCE) of 23.8 percent. Additionally, the stock has a P/E ratio of 5, compared to the industry’s P/E ratio of 32.9, and its debt-to-equity ratio stands at 0.28.

About the Company

International Conveyors Limited is engaged in the business of manufacturing conveyor belting. The revenue generated from this segment during the FY24 comprises of 93.73 percent of the total revenue of ICL.

ICL is one of the largest manufacturers of solid woven belting in the world and has a complete product range with the ability to make conveyors up to 3150 kN/m (type 18 width in strength and belt widths up to 1800 mm).

Written by Shivani Singh

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