Business Overview
Ion Exchange is one of the leading Companies in Water Treatment segment. It is also present in Environment management segment as well.Different solutions offered by the Company are
- Water and Environment management services for sectors like infrastructure, industry, institutions, municipal, homes and communities, urban and rural
- Solid waste management and Sewage treatment
- Manufactures Ion exchange resins for Water and Non water specialty applications
- Water treatment chemicals and Specialty process chemicals
The Company has expertise as well as experience as shown by below statistics
- It has 1 lakh installations world wide which shows capability of the Company
- It exports to Africa, Japan, Middle East, Russia, South East Asia, UK, USA and neighboring countries
- It has largest service network among water treatment companies present in Asia.
Stock Performance
The Stock has given fifteen times return in past two decades. Majority of price action have come in last few years. I would not advice to invest at current levels as it has ran up too much in last few months.
The dividend yield is also decent. In long term stock performance chart you can clearly see that it has not performed for almost one decade as stock price remained flat.
My Opinion
The Company operates in one of the growing sector or sector claimed as future sector. Water will become one of the most precious items in days to come. The World is witnessing shortage of drinking water in coming days. So waste water management is very important nowadays.
Government Institutes and Industries both are focusing on this. The effort is to preserve water and use it effectively. Along with Water management Solid Waste management has become very important.
Solid Waste is becoming growing concern for industries. So Company focusing in these two areas will have good demand in future. As more and more Companies trying out Water management and Waste management there will be increase in order flows for the Company.
Having said that this segment is very technical and Company having experience and expertise will have upper hand. Many big companies are also focusing on these two growing sectors. It will be interesting to see how well the Company performs in comparison to Competition.