HDFC Securities has a buy call on Ion Exchange with a target price of Rs 4020. The current market price of Ion Exchange (India) is Rs 3447, and analysts expect that the company can reach HDFC Securities’ defined target in the time period of 2-3 quarters.
Ion Exchange is the pioneer of water treatment in India with a legacy spanning five-plus decades, and today it is a leading company in the environment and water management with a global presence. The company was incorporated in 1964 and is a subsidiary of the Permutit Company of the UK, which became an Indian company in 1985 when Permuit divested its holdings. It is a small-cap company that has accumulated a market cap of Rs 5072.98 crore and is now recognised as a premier solutions provider (one of the very few companies worldwide) with a complete range of solutions for Wastewater Treatment, Solid Waste Management, Waste to Energy and Water Treatment.
Let’s see why HDFC decided to buy a call on Ion Exchange (India) and what made the company optimistic or ‘bullish’ about the prospects of Ion Exchange.
Ion Exchange Financial Report
Ion Exchange (India) proved to be a financially booming company as claimed in its 58th Annual Report for 2021-22. The second wave of the pandemic impacted the year 2021-22, and the businesses embraced social, economic and environmental sustainability most. As the pioneer of sustainability, Ion Exchange embedded its business core in conserving the planet’s most precious resources through environmental and water management solutions.
The following points from FY 2021-22 are worth considering to decide HDFC’s decision to buy a call of Ion Exchange (India):
- The company’s operating income rose 8.8% on a YoY (year-on-year) basis.
- The company’s operating profit increased by 5,2% YoY during the fiscal year, whereas the operating profit margin saw a fall, 13.6%, in FY22 against 14.1% in FY21.
- The company’s depreciation charges increased by 1.3% while the finance cost lowered by 13.9% YoY.
- Other incomes of the company grew by 28.4% YoY.
- The net profit of the FY 2021-22 grew by 12.5% YoY.
- The company’s net profit margins rose from 9.9% in FY 21 to 10.2% in FY 22.
Ion Exchange income statement 2021-22
|(Rs m)||12 March 21||12 March 22|
|Net Profit Margin||9.9%||10.2%|
This data proves the company’s compatibility and provides a good scope for HDFC securities to expand its profits. Check out HDFC Securities share price now!
Ion Exchange Projects Towards Sustainability & Better Future
Ion Exchange (India) is always in favour of driving growth sustainably and has undertaken multiple incredible projects. The company was even given a prestigious Integrated Water Supply Project by the Sri Lankan Governmental Authority – National Water Supply & Drainage Board (NWSDB) which included engineering, designing, execution, and O&M to help improve the water supply in the remote areas of Sri Lanka, Aluthgama, Matugama, Agalawatta in the Kalutara in 2022. This project aimed to alleviate the significant challenge of salinity in their drinking water.
The pioneer company also added significant projects to the SDGs (Sustainable Development Goals) in the Water Infrastructure sector. Offerings like procurement, construction solutions and turnkey engineering are also enabled to execute large infrastructure development projects.
Ion Exchange is also set to benefit a major Municipal Corporation to augment its current water treatment plant for increased quality and capacity requirements with its innovative and cutting-edge technologies.
HDFC Securities Benefit From Buy A Call On Ion Exchange
HDFC Securities is a subsidiary of HDFC bank, which decided to buy a call on Ion Exchange at a target price of Rs 4020. The financial reports of the Ion Exchange and its future projects are adequate to believe that HDFC has not made a wrong call. According to the analysts, Ion Exchange will reach the targeted price in 2-3 quarters. This implies HDFC Securities can magnify its gains in the stock price since the Ion Exchange is showing such phenomenal growth in the financial sector.
If you are willing to invest in the best unlisted shares, then Stockify will best suit you. It’s a leading unlisted shares trading platform which lets retail investors trade in a range of unlisted shares of all domains, from technology, healthcare, manufacturing, finance, and others. Stockify has a team of experts ready to direct you towards the best trading decisions and will assist you throughout the unlisted shares buying process, from KYC verification to Share transfer. You get a daily update of the unlisted shares price of your interested stocks, based on market fluctuations, along with other key performance indicators that will help you make a sound investment decision that suits your profile. Want to buy and sell unlisted shares or ESPOs? Try Stockify!