Stock under ₹70 jumps after acquiring 3,44,668 shares in ethanol company
International Conveyors Limited (ICL) has acquired 344,668 equity shares of Gulshan Polyols Limited (GPL) for ₹6.118 crore. GPL is a leading Indian manufacturer of ethanol and specialty chemicals. This strategic investment aligns with ICL’s diversification efforts into the ethanol sector. Following the announcement, ICL’s stock experienced a 2.5% intraday increase, reaching ₹67.83 per share.
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.
Previous Acquisition
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.
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Source : Trade Brains
