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Ion Exchange (India) Ltd. Stock Analysis

Small Cap
Evaluated by 951 users | BSE: 500214 | NSE: IONEXCHANG |
Engineering - Industrial Equipments
Ion Exchange India pioneered water treatment in India and is today the country's premier company in water and environment management, with a strong international presence. Formed in 1964, as a subsidiary of the Permutit Company of UK, it became a wholly Indian company in 1985 when Permutit...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 8.35%12%13.81%10.28%13.56%14.67%18.26%14.89%16.3%20.04%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5716537677127328029269861,1021,407
Y-o-Y Gr. Rt.-14.2%17.6%-7.2%2.8%9.6%15.6%6.4%11.8%27.7%
Adjusted EPS (Rs.) 7.1212.1815.8712.8818.0123.0434.6932.442.0363.07
Y-o-Y Gr. Rt.-71.1%30.3%-18.8%39.8%27.9%50.6%-6.6%29.7%50.1%
Book Value per Share (Rs.) 107.58117.89135.69137.07150.46170.73184.69213.67255.24328.29
Adjusted Net Profit 9.616.521.118.726.233.550.947.561.792.5
Net Op. Cash Flow (Rs. Cr.) 24.613.223.1-1.941.92415880.210560.9
Debt to Cash Flow from Ops 1.613.442.66-39.111.242.590.551.730.821.54
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ion Exchange (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.5%14%15%27.7%
Adjusted EPS 27.4%28.5%22.1%50.1%
Book Value per Share 13.216.921.128.6
Share Price 22.1% 21.7% 13.2% 8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.7910.6712.29.7312.4314.2619.5316.2717.9321.62
Operating Profit Margin (%) 4.445.126.416.057.537.799.057.48.478.82
Net Profit Margin (%) 1.672.532.752.633.584.185.494.825.596.57
Debt to Equity 0.280.290.340.370.240.250.320.440.230.19
Working Capital Days 239235204231265279250240228202
Cash Conversion Cycle 3323125111619343022
Entity Percentage Holding
Promoters 27.01%
Institutions 7.26%
Non-Institutions 65.73%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Ion Exchange (India) Ltd.'s performance infers:

Ion Exchange (India) Ltd. earnings have grown by 28.5%, whereas share price has appreciated 21.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Ion Exchange (India) Ltd. share prices over the last 10 years. Here is what we found out:

Ion Exchange (India) Ltd. share price has appreciated 13.3% annually over the past ten years.

Ion Exchange India pioneered water treatment in India and is today the country's premier company in water and environment management, with a strong international presence. Formed in 1964, as a subsidiary of the Permutit Company of UK, it became a wholly Indian company in 1985 when Permutit divested its holding. Ion Exchange currently employs 1,000 people -- multi-disciplinary teams of highly experienced professional managers, technologists and scientists, supported by a widespread

Ion Exchange India pioneered water treatment in India and is today the country's premier company in water and environment management, with a strong international presence. Formed in 1964, as a subsidiary of the Permutit Company of UK, it became a wholly Indian company in 1985 when Permutit divested its holding. Ion Exchange currently employs 1,000 people -- multi-disciplinary teams of highly experienced professional managers, technologists and scientists, supported by a widespread infrastructure in India and abroad.

All operating units of the company are ISO 9001:2000 certified. It was the first ion exchange resin manufacturing company in India to have an FDA approved facility for the manufacture of pharmaceutical grade speciality resins. The resin unit is also ISO 14001 certified. And its chemical division, too, is the first in the water treatment sector in India to be ISO 14001 certified.

In its 40 years of experience, the company has provided installations for diverse industries in India and abroad, from nuclear and thermal power, fertilizer and refinery, to automobile, electronics and textile. The company has an in depth understanding and knowledge of the Indian market as well as of the cultural patterns prevailing particularly in South East Asia, Africa and the Middle East.

More than 35,000 plants in India and abroad are packaged, pre-engineered and custom built. Over 400 major installations at thermal and nuclear power plant stations, fertilizer factories, refineries, petrochemical and other industries. The company undertakes over $30 million worth projects in India on global tender basis and many projects abroad. Exports of equipment, ion exchange resins, membranes and water treatment chemicals to Japan, South East Asia, USA, Europe, Africa, Egypt, Middle East, Russia, Bangladesh, Nepal, Mauritius and Sri Lanka.

Products:

Drinking Water Purifiers, Water Conditioners, Sullage Recycle & Sewage Treatment Systems

Subsidiaries:

1. Ion Exchange Singapore Asia Pacific

To service the Pan Asian region for total water management it set up Ion Exchange Asia Pacific in Singapore. 

2. Ion Exchange Services 

Ion Exchange's investment in building an all-India service infrastructure, started almost two decades ago, is today serving the company in good stead. The service company's network, the largest in the water treatment industry in India, and recently extended to several countries overseas, offers a comprehensive range of technical and value-added services. 

3. Ion Exchange Enviro Farms

Like its core business, Ion Exchange's diversification into organic agri-horticulture, through Ion Exchange Enviro Farms, is a natural extension of its activities and shares the vision of a better world. An agri-business subsidiary, this company harnesses Ion Exchange India's four decades of water and environmental management experience into organic agri-horticulture. The company is among the first corporate in India to undertake scientific bio-intensive organic farming on a commercial scale. Its thrusts areas of business are environ farms, contract farming and produce marketing.

Joint Venture:

• Ion Exchange Waterleau

Their joint venture with Waterleau, Brussels specializes in environmental solutions and services with proprietary technologies encompassing air, water & waste water, bio solids, waste & soil remediation in municipal and industrial segments.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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