International Combustion (India) Ltd ..... A turnaround story

Today I am expressing my view on a turnaround candidate ... International Combustion Ind Ltd

History

International Combustion commenced operations in the year 1936 based in Calcutta as a trading house representing the interests of International Combustion, U.K. In 1974 the Company changed its status from Private to Public Limited Company.

In 1961, the Company started its manufacturing activities, and presently has three business divisions:-

Heavy Engineering Division- Nagpur & Kolkata factory

Kolkata Division

Nagpur Division

Bauer Division- Aurangabad factory Project Plant System

  Aurangabad Division

From a modest beginning with manufacture of mineral grinding mills, the Company today serves all the major core industries with a specialised range of products which include, Vibrating Screens and Feeders, cone crushers, Bulk Material Handling Equipment,mining haulages, Raymond Grinding Mills, Air Classifiers and Flash Drying systems and Geared Motors and Gear Boxes.

Foreign technical collaborations and licensing agreements with world leaders in the respective product groups have ensured manufacture of premium quality equipment.

Fully equipped manufacturing facilities at Calcutta, Nagpur and Aurangabad ensure total control over production and product quality.

Outlook

 Promoter holding 53% stake in company, IC posted 24.6 cr top line and with exceptional profit of 1.5 cr in Q3 of FY17 compare to FY16 annual loss of 0.51 cr. EPS of last qtr is 6.22 Vs negative EPS of last Financial Year. At this stage it gives clear sign for turnaround story. Company is having huge finance cost outflow. Stock is having low liquidity due to less capital of just 2.89 cr. Stock only trading in BSE @ 654 level. One can expect minimum 4 digit rate in no time. Long term it may touch 5 digit also.

Disc: holding few shares of company.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”