Cash Market Market Analysis

International Conveyors Ltd.: Bullish Outlook and Growth Potential

International Conveyors Ltd. is a mid-cap company engaged in the manufacturing of material handling equipment. With a market capitalization of ₹527 crore, ICL has been gaining attention from investors due to its strong fundamentals and bullish outlook.

Key Financial Indicators:

  • Current Price: ₹83.2
  • High / Low: ₹125 / ₹70.0
  • Stock P/E: 6.58
  • Book Value: ₹43.1
  • Dividend Yield: 1.32%
  • ROCE: 25.4%
  • ROE: 25.6%
  • Face Value: ₹1.00
  • Chg in Prom Hold 3Yr: 6.86%
  • Promoter holding: 68.6%
  • Pledged percentage: 0.00%

Understanding the Indicators:

  • Stock P/E: A relatively low P/E ratio of 6.58 suggests that company is currently undervalued compared to its peers. This could indicate a potential upside for the stock.
  • Book Value: The book value of ₹43.1 indicates that the company’s assets exceed its liabilities. A higher book value can be a positive sign for investors.
  • Dividend Yield: While the dividend yield of 1.32% is not exceptionally high, it does provide some income to investors.
  • ROCE and ROE: Both ROCE (Return on Capital Employed) and ROE (Return on Equity) stand at a healthy 25.4% and 25.6%, respectively. This suggests that ICL is efficiently utilizing its capital to generate profits.
  • Promoter Holding: A promoter holding of 68.6% is generally seen as a positive sign, as it indicates that the promoters have a significant stake in the company’s success.

Bullish View Above ₹89:

Based on the current financial indicators and technical analysis (not discussed in this post), there is a bullish sentiment prevailing above the ₹89 price level. If company can sustain above this level, it has the potential to reach the target price range of ₹132 to ₹150. In the longer term, the stock could even appreciate further to ₹200 or more.

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.