Check Before You Invest : Ion Exchange (India) Ltd

Snapshot

Q.1 Which industry/sub-sector does Ion Exchange (India) Ltd belong to?

Ion Exchange (India) Ltd belongs to the Miscellaneous sector, operating specifically within the Environmental Services segment.

Q.2 Is Ion Exchange (India) Ltd a good quality company?

Ion Exchange (India) Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Ion Exchange (India) Ltd undervalued or overvalued?

Ion Exchange (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Ion Exchange (India) Ltd a good buy now?

Ion Exchange (India) Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd revenue growth is 16.5% for FY-2025, which is above its 5-year CAGR of 12.54%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd Return on capital employed is 22.86% for FY-2025, which is below its 5-year historical median of 29.78%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd Return on Asset is 8.24%, which is below its 5-year historical median of 9.79%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd Return on equity is 18.3% for FY-2025, which is below its 5-year historical median of 22.12%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd Cash conversion cycle is 59 days, above its 5-year historical median of 29 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.98	0.98
ROE	18.3	22.12
ROCE	22.86	29.78
Cash Conversion Cycle	59 days	29 days

Q.6 Gross Profit margin of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.9% for FY-2025, which is below its 5-year median of 14.5%, indicating decreasing margins.

Q.7 Operating Profit Margin of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.29% for FY-2025, which is below its 5-year median of 12.72% indicating decreasing margins.

Q.8 Net Profit Margin of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd Net Profit Margin is 8.44% for FY-2025, is below with its 5-year median of 9.78%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	12.9	14.5
Operating Profit Margin	11.29	12.72
Net Profit Margin	8.44	9.78

Q.9 Debt to Equity ratio of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd Debt-to-Equity ratio is 0.18, which is lower with the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ion Exchange (India) Ltd?

Ion Exchange (India) Ltd Debt to cash flow from operations is 8.67, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ion Exchange (India) Ltd?

Promoters hold 25.52% of the Ion Exchange (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ion Exchange (India) Ltd vs industry peers?

Ion Exchange (India) Ltd revenue CAGR is 12.54%, compared to the industry median CAGR of 29.24%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	16.5	29.2
Gross Profit Growth	6.8	22.1
Operating Profit Growth	7.1	15.7
Net Profit Growth	4.9	26.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.98	0.84
ROE	18.3	13.91
ROCE	22.86	13.74
Cash Conversion Cycle (days)	59.22	74

Valuation & price assessment

Q.1 Stock return of Ion Exchange (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 29.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	29.1%	24.5%	4.3%	-19.1%

Q.3 Valuation ratios of Ion Exchange (India) Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	32.88	29.49	31.76
Price to Book	4.4	5.61	4.86
Price to Sales	2.28	2.70	3.24
EV to EBITDA	18.66	17.04	17.79

Check more companies

1. VA Tech Wabag

2. ION Exchage

3. Antony Waste Hand

4. Eco Recycling

5. Concord Enviro Sys.

10. Urban Env Waste Mgt

Check trending companies

1. Bharat Electronics Ltd.

2. Titagarh Rail Systems Ltd.

3. Info Edge (India) Ltd.

4. Tata Motors Passenger Vehicles Ltd.

5. Bajaj Finserv Ltd.