Promoter shareholding of this microcap company increased by 89 per cent. Do you own it?

The company’s promotor holding has witnessed a robust rise consistently. Moreover, the stock has delivered a remarkable return of around 152 per cent.

Business Overview

International Conveyors Limited (ICL) specialises in manufacturing and promoting fire retardant, anti-static conveyor belting made from solid woven fabric and reinforced with polyvinyl chloride (PVC) impregnation and covering. 

It operates in three primary business segments that are Conveyor Belting, Wind Energy, and Trading Goods. The Conveyor Belting segment focuses on producing and selling PVC Conveyor Belting, which serves as an essential link in the process of conveying semi-finished goods to the final production stage. 

Promoters holding

A close examination of the company's shareholding pattern reveals that the promoters have been actively repurchasing shares from the secondary market. In FY17, the promoter holding stood at 37.39 per cent, but it has significantly increased to 70.65 per cent over time which is 89 per cent up from FY17 holdings.

Notably, the company has consistently bought back shares from the secondary market each year without creating a gap, albeit in smaller portions, consistently following this trend.

Share Performance

Today, the stock commenced trading at Rs 75.03, almost flat from the previous day's closing price of Rs 75.45. The shares of the company concluded the day at Rs 74.67 on BSE. The stock's 52-week highs and lows are Rs 83.95 and Rs 40, respectively. Currently, its market capitalization stands at Rs 504 Crore. 

Over the past three months, the stock has delivered an impressive return of 37 per cent, while in the last three years, it has generated a multibagger return of 152 per cent.

Financial Performance

If we check the company’s financials, annual revenue experienced an increase of 4.8 per cent, from Rs 205 Crore to Rs 215 Crore. The operating profit of the company stands at Rs 29 Crore, accompanied by an operating profit margin of 14 per cent. Furthermore, the net profit of the company amounts to Rs 29 Crore. 

The company's return on capital employed (ROCE) and return on equity (ROE) are reported as 15.9 per cent and 13.3 per cent, respectively.