🔔 🔔 Click here to get one fundamentally strong company every week delievered straight to your WhatsApp!

Penny Stock idea: A company with 40% domestic market share

Current Market Price on the date of publishing this report-: 87 Rs


  • Penny stocks inherently carry a high level of risk and are susceptible to capital loss.
  • Please be advised that Darkhorsestocks is not registered with SEBI (Securities and Board of India) and does not operate as a research advisory. The companies presented within this report are provided solely for informational purposes.
  • Darkhorsestocks and its members will not be held responsible for any financial losses incurred.
  • While Darkhorsestocks does invest in penny stocks, it is important to note that these investments are made with funds that we are willing to lose. Penny stock investments should not be pursued with the expectation of quick gains but rather for exploring early-stage companies or for recreational purposes.
  • Kindly be aware that Darkhorsestocks will not offer any further guidance or updates beyond price and return information. Penny stock ideas presented here are intended for an extended investment horizon, typically spanning 3 to 5 years. This disclaimer is intended to absolve Darkhorsestocks, its writers, and associates from any potential liabilities.

International Conveyors Ltd


Incorporated in 1973, International Conveyors initiated its commercial production in 1979. This India-based company specializes in the production of polyvinyl chloride (PVC) conveyor belt solutions catering to the mining sector and various other industries. Their product range includes solid-woven, fabric-reinforced, polyvinyl chloride (PVC)-impregnated, and PVC-coated fire-retardant anti-static conveyor belting. These belts are fire retardant, antistatic and are mainly used in underground mines for transportation of minerals such as Coal & Potash.

Through a licencing agreement with Scandura PLC in the United Kingdom, ICL Conveyor Belting was manufactured in compliance with British underground coal regulations. When Scandura was bought by ICL’s primary competitor, ICL took advantage of the solid technological foundation it had developed over the years, allowing it to continue growing its technology and know-how via its own resources.

International Conveyors is divided into three different segments:

Conveyor Belting Segment: This division is in charge of producing and selling PVC conveyor belting.

Wind Energy Segment: The company generates, supplies, and sells wind power (electricity) in this area.

Unallocated/Corporate Segment: Includes corporate, administrative, and financial operations.

International Conveyors Limited (ICL) is an ISO 9001:2008 certified firm with Bureau Veritas accreditation. ICL has a large presence in the Indian underground PVC mine conveyor belt industry, accounting for around 45% of the market. In India, their procurement methods include both global and domestic bids, and the corporation continually demonstrates its worldwide competitiveness.

In fiscal year 2022-23, the company produced 4,50,363 metres of solid woven belting, making it one of the world’s largest makers of solid woven belting. Conveyor Belting with strengths up to 3150 kN/m (type 18) and belting widths ranging from 600 mm to 1800 mm are among the many products available from the company. With a manufacturing capability of 1 million metres of PVC Solid Woven Conveyor Belting per year, this is the biggest range of Solid Woven Belting offered from any one company.

Furthermore, for over three decades, the company has had a long-standing relationship with Mato Industries Ltd., UK, operating as their distributor in India for Mato Belt Lacing Machines, Fasteners, Spindle Pins, Belt Cutters, and associated items. The company has seen strong development in Mato Product sales in India and predicts further significant growth in this area in the coming years.

In addition, the company has been actively involved in several supply agreements for Indian Coal Mines, as well as export contract arrangements with Canadian clients for potash mining applications. Using innovative tools like as the Sidewinder programme, the company provides extensive advice to clients in determining the suitable belting depending on their conveyor configuration. The company is proud to have been the first to use PVC belting in the cement industry.

With over three decades of expertise in conveyor belting research and development, manufacturing, and marketing for underground mining operations, ICL has emerged as a global leader in Conveyor Belting Products and Services. The company has an impeccable track record of invention, product design, and application engineering.

ICL is a major exporter of PVC belts to the United States, Canada, South Africa, and Australia, in addition to supplying the Indian market. These exports meet the fire-resistant and anti-static criteria required in the different nations for fire-hazardous applications.

Today, ICL is the world’s second-largest manufacturer of PVC solid woven belting, exporting more than 90% of its output.

Business Products

Conveyor belting is critical for bulk transportation of materials like, coal, potash salt etc and no substitute has been found which is why Mining Operations Rely Heavily On Belting.

The company provides an extensive range of conveyor belting systems that are known for their quality and dependability. Their product portfolio includes Type-3 to Type-6 belts, which are developed to fit the special needs of the Indian market, as well as Type-3 to Type-12 belts, which are popular in foreign markets. Notably, their Mineplast Fire Resistant belting has established a solid reputation, especially in coal mining and related applications where persistent high productivity is significantly reliant on belt performance. These belts, which are primarily intended for usage in potentially hazardous settings, not only meet but frequently surpass global fire-resistance and anti-static requirements. Their adaptability is shown in a variety of applications, including coal, potash, phosphate, fertiliser, clay, gypsum, salt, and even the lumber sector.

These conveyor belts stand out for their tough characteristics, which include all-synthetic high tenacity centre warp yarns for strength, synthetic pile warp yarns for impact protection and fastener bedding, and a composite weft yarn for optimal transverse stiffness and fastener retention. Furthermore, the use of woven selvedge prevents edge wear, extending belt life. The belts are additionally vacuum impregnated and consolidated with PVC compounds through solid woven fabric, which improves rip strength and reduces moisture infiltration. Throughout the life of the belt, special PVC covers decrease wear and increase carrying capacity. The company undertakes extensive testing with an emphasis on maintaining rigorous quality control and complying to international standards, making them a top choice for companies in need of trustworthy conveyor belting solutions.

In the field of producing solid woven fire-retardant anti-static PVC Conveyor Belting for underground mining International Conveyors is India’s largest listed company having about 40% domestic market share.



The company maintains a significant portfolio of shares in various listed Indian companies. Further information can be found in the latest annual report.


For the Year Ended March 23

  • Net Sales (March 2023): Rs. 215 crore (up 4.88% from Rs. 205 crore in March 2022).
  • Yearly Net Profit (March 2023): Rs. 29 crore (up from Rs. 16 crore in March 2022).
  • EBITDA (March 2023): Rs. 29 crore (up 45% from Rs. 20 crore in March 2022).
  • Borrowings scaled by Rs. 45 crore, while investments increased by roughly Rs. 38 crore.
  • Cash and Equivalents: Rs. 11 crore, the highest amount in the company’s history.
  • Buyback: The company performed a share buyback, and further information is available in the buyback section.
  • Dividend: For the financial year ending March 2023, the company declared a 110% dividend on the face value of Rs. 1, equaling Rs. 1.1 dividend.
  • Compounded Sales growth has averaged 30% over the last three and five years.
  • Over a three- and five-year period, compounded net profit growth remained at 51% and 42%, respectively.
  • In FY23, the return on capital employed (ROCE) was 16%.
  • Investments: The company has around Rs. 157 crores in different listed and unquoted securities. Please see the FY23 balance sheet for a complete list of holdings.
  • Company is engaged in trading of fasteners.
    • During the Financial Year 2022-23, the revenue generated from trading of goods is Rs. 803 Lacs as compared to Rs. 705 Lacs and increased by 13.90% over the year.
    • The Profit before Interest and Tax for the year ended March 31, 2023 is Rs. 197 Lacs as compared to Rs. 174 Lacs and has grown by 11.68% over the year.

For Q1 FY 24

  • Net Sales in June 2023 were Rs. 42.66 crore, a 23.66% decrease from Rs. 55.88 crore in June 2022.
  • Quarterly Net Profit in June 2023 was Rs. 14.11 crore, a significant increase of 102.15% over June 2022 when it was Rs. 6.98 crore.
  • EBITDA in June 2023 was Rs. 20.38 crore, representing a 146.73% increase from Rs. 8.26 crore in June 2022.
  • Net income for the first quarter of fiscal year 24 was Rs. 14 crore, a significant increase over the Rs. 3 crore reported in the same quarter previous year.
  • Higher sales and operational income can be ascribed to the increase in net profit for Q1 FY 24.

Buyback of shares

In a meeting on September 9, 2022, the Board of Directors approved a buyback of equity shares from the open market, excluding those held by promoters and related parties, with a maximum buyback size of Rs. 2,970 lacs, representing a significant portion of the company’s paid-up capital and reserves. The repurchase began on November 3, 2022, and ended on May 3, 2023, resulting in the purchasing of 41,21,000 equity shares for Rs. 2,311.85 lacs. The repurchase cost Rs. 533.36 lacs in transaction costs. As a result of the extinguishment of 27,92,000 equity shares, the paid-up equity share capital was decreased by Rs. 27.92 lacs. Furthermore, another 13,29,000 equity shares were extinguished following the end of the fiscal year 2022-23, bringing the total paid-up equity share capital to Rs. 633.79 lacs as of the report date. There was no further share capital issue during the year, however the business awarded 23,14,967 stock options under the “ICL Employee Stock Option Plan 2020,” with 11,59,683 stock options surrendered for the fiscal year 2022-23.

Managements comments and what makes the company stand out.

Capabilities in Advanced Manufacturing:

  • Beaming machines with a large and heavy beam width (2400 mm).
  • Machine capable of producing up to 22 tonnes of carcass in a single load.
  • Machines capable of twisting and tripling up to 20 tonnes at a time.
  • A six-story Vacuum Impregnation Tower ensures excellence.

Excellence in Weaving:

The world’s largest and heaviest belting fabric weaving looms (reed area up to 2100mm).

High entrance barrier for authorised supplier status via a Dual Stage Approval procedure.

Strategic Partnerships:

Long-term agreements with recognised vendors to simplify vendor selection. Customers signed long-term contracts (5-7 years) to ensure order visibility and recurring business.

Customised Solutions:

Capability to make items that fulfil country and client requirements. Price variability provisions are used in contracts to handle raw material price changes.

Dominance in a Specific Market:

The company has a significant market share as one of the few worldwide producers in the specialist sector.

Strong Order Book: 

The addition of new clients and goods has increased the visibility of our order book, allowing us to maintain an estimated six-month order book position at any one moment.

Replacement Demand: 

Capex cycle revivals are likely to create considerable replacement demand.

Sectorial Outlook

Long Growth potential: Consistent investments in the mining industry, backed by increased demand from end-user industries, provide significant growth potential for our goods.

Global potash demand is expected to grow ~7Mmt in the next three years, with medium term growth rates at historic levels. Significant demand growth potential beyond historic rates 

Focus on Automation: Our in-house R&D team is committed to increasing efficiency and extending our product line through automation and process improvements.

The Indian Conveyor Belting market is on the rise, propelled by the requirements of the country’s expanding industrial sector. Conveyor Belting is rapidly being used for effective material handling in industries such as mining, electricity, automotive, and logistics. Government efforts such as ‘Make in India’ promote local manufacturing, creating a favourable climate for Conveyor Belting makers. The sector is prepared for long-term growth, thanks to a strong emphasis on worker safety and a diverse variety of Conveyor Belting alternatives.

The company is well-positioned to provide effective and safe Conveyor Belting systems that will boost productivity in modern mining operations. As demand for Conveyor Belting grows across industries, the firm is committed to capitalising on possibilities in this changing landscape, emphasising the “be vocal for Local” programme. Furthermore, government-led coal seam auctions to private companies present attractive commercial opportunities in the foreseeable future.


ICL holds 40% of the local market, making it India’s largest publicly traded conveyor belting maker. Their ISO 9001 accreditation and distribution collaboration with Mato Industries Ltd., UK, indicate their dedication to quality and innovation.

Conveyor belts with strengths up to 3150 kN/m and widths ranging from 600 mm to 1800 mm are available from ICL. The company is well-positioned to address expanding demand for efficient material handling solutions, with production operations in Maharashtra and West Bengal. Their robust order book, automation focus, and forecasted replacement need in areas such as Potash and Coal highlight their development potential in a volatile market context. ICL is committed to increasing productivity, supporting indigenous supply, and retaining their leadership in the conveyor belting business as they navigate the future. This makes ICL worth exploring for long term.

Leave a Reply