International Conveyors Faces Challenges with High Debt and Underperformance Metrics

International Conveyors, a microcap player in the engineering sector, is currently facing challenges reflected in its financial metrics. The company has a Debt to EBITDA ratio of 3.06 times, indicating a significant burden in servicing its debt obligations. This financial strain is compounded by a modest Return on Equity (ROE) of 9.21%, suggesting limited profitability relative to shareholders' funds.
Despite a notable increase in profits by 63.1% over the past year, the stock has experienced a decline of 10.01%, underperforming against broader market indices such as the BSE 500. The company's valuation appears high with a Price to Book Value ratio of 1.6, while domestic mutual funds hold no stake, potentially reflecting a lack of confidence in the current pricing or business fundamentals.

On a more positive note, the company has shown healthy long-term growth, with operating profit increasing at an annual rate of 76.65%. Recent quarterly results indicate a PAT of Rs 26.81 crore, growing by 33.8%. However, the technical trend remains sideways, indicating a lack of clear price momentum in the stock.