Rs 777 to Rs 2250: This multibagger stock gave a return of 190% return in the last one year. Do you own it?

An amount of Rs 1 lakh invested in Ion Exchange in November 2020 would have become Rs 2.91 lakh in November 2021

With strong fundamentals, the stock of multibagger Ion Exchange rallied from Rs 777 in November 2020 to Rs 2,250 today, surging 2.91x times in the last one year. An amount of Rs 1 lakh invested in November 2020 would have become Rs 2.91 lakh in November 2021

Ion Exchange (India) is engaged in a wide range of solutions across the water cycle from pre-treatment to process water treatment, wastewater treatment, recycle, zero liquid discharge, sewage treatment, packaged drinking water, seawater desalination etc

Key Products /services 

ION Exchange has three major segments namely, Engineering, Consumer Products, and Chemicals.

Engineering segment (61% of revenues)

In this segment, the company provides pre-designed and pre-engineered products catering to small industries, the company also offers customized solutions to heavy industries.

Chemical segment (31% of revenues)

The company provides a wide range of resins, speciality chemicals and customized chemical treatment programs for water, non-water and speciality applications. This segment has the highest profitability and ROCE.

Competitive strength

1. Diversified Clientele base: The company caters to a wide range of Industries from the Textiles to Steel sector and its Marquee clients include The Tata group, Vedanta, Reliance, NTPC, Oberoi Hotels, Mitsubishi and many more

2. Enhancing Global Footprints: The company derives 38% of its revenue through exports. IEL has received an order from South Asia’s largest paper company for their unit in the Philippines and Indonesia, where the water plant will treat 23 million litres of wastewater. Apart from its strong presence in Asia, the company also exports its chemicals to USA, UK, Europe and Canada.

Double-digit growth

In the last five years from FY16 to FY21, revenue has grown at a CAGR of 11% from Rs 868 crore to Rs 1,450 crore and profit has grown at a CAGR of 57% from Rs 15 crore to Rs 144 crore which shows the steep growth of the company. The operating margin has been increasing from 7% in 2016 to 14% in 2021.

The unique business model and the growth story is so fascinating. Watch out for this company as an investment opportunity in future and ride the momentum.