BSE:500214

Stock Analysis Report

Executive Summary

Ion Exchange (India) Limited, together with its subsidiaries, provides water and environment management solutions in India.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


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Share Price & News

How has Ion Exchange (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

500214

2.6%

IN Commercial Services

2.4%

IN Market


1 Year Return

91.3%

500214

-24.2%

IN Commercial Services

8.0%

IN Market

Return vs Industry: 500214 exceeded the Indian Commercial Services industry which returned -24.2% over the past year.

Return vs Market: 500214 exceeded the Indian Market which returned 8% over the past year.


Shareholder returns

500214IndustryMarket
7 Day3.7%2.6%2.4%
30 Day-8.0%-1.0%2.5%
90 Day-8.9%-3.5%3.6%
1 Year92.6%91.3%-24.0%-24.2%10.3%8.0%
3 Year116.9%112.3%6.3%3.8%22.3%16.0%
5 Year257.5%242.1%72.2%67.2%42.8%29.3%

Price Volatility Vs. Market

How volatile is Ion Exchange (India)'s share price compared to the market and industry in the last 5 years?


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Valuation

Is Ion Exchange (India) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500214 (₹659.9) is trading below our estimate of fair value (₹1507.05)

Significantly Below Fair Value: 500214 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500214 is good value based on its PE Ratio (11.3x) compared to the Commercial Services industry average (11.3x).

PE vs Market: 500214 is good value based on its PE Ratio (11.3x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500214's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500214 is overvalued based on its PB Ratio (2.9x) compared to the IN Commercial Services industry average (1x).


Next Steps

Future Growth

How is Ion Exchange (India) forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500214's earnings are forecast to decline over the next 3 years (-10.1% per year).

Earnings vs Market: 500214's earnings are forecast to decline over the next 3 years (-10.1% per year).

High Growth Earnings: 500214's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 500214's revenue (6.9% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 500214's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 500214's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ion Exchange (India) performed over the past 5 years?

37.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500214's earnings have grown significantly by 37.6% per year over the past 5 years.

Accelerating Growth: 500214's earnings growth over the past year (47.9%) exceeds its 5-year average (37.6% per year).

Earnings vs Industry: 500214 earnings growth over the past year (47.9%) exceeded the Commercial Services industry 4.3%.


Return on Equity

High ROE: 500214's Return on Equity (26.2%) is considered high.


Return on Assets

ROA vs Industry: 500214's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: 500214 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Ion Exchange (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: 500214's short term assets (₹9.4B) exceeds its short term liabilities (₹8.5B)

Long Term Liabilities: 500214's short term assets (9.4B) exceeds its long term liabilities (507.4M)


Debt to Equity History and Analysis

Debt Level: 500214's debt to equity ratio (36.9%) is considered satisfactory

Reducing Debt: 500214's debt to equity ratio has reduced from 57.2% to 36.9% over the past 5 years.

Debt Coverage: 500214's debt is well covered by operating cash flow (131%).

Interest Coverage: 500214 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500214 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500214's debt is covered by short term assets (assets are 9.713880x debt).


Next Steps

Dividend

What is Ion Exchange (India)'s current dividend yield, its reliability and sustainability?

0.68%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%0.6%markettop25%2.4%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500214's dividend (0.68%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500214's dividend (0.68%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: 500214's dividends per share have been stable in the past 10 years.

Growing Dividend: 500214's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.7%), 500214's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Ion Exchange (India)'s salary, the management and board of directors tenure and is there insider trading?

10.9yrs

Average board tenure


CEO

Rajesh Sharma (65yo)

14.5yrs

Tenure

₹40,922,099

Compensation

Mr. Rajesh Sharma, B.Sc., LL.B. has been the Managing Director of Ion Exchange (India) Ltd. since April 2005. Mr. Sharma served as the Chief Operating Officer of Sabero Organics Gujarat Ltd. since July 31, ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Rajesh's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Rajesh's compensation has been consistent with company performance over the past year.


Board Age and Tenure

10.9yrs

Average Tenure

72yo

Average Age

Experienced Board: 500214's board of directors are seasoned and experienced ( 10.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rajesh Sharma (65yo)

    Executive Chairman & MD

    • Tenure: 14.5yrs
    • Compensation: ₹40.92m
  • Dinesh Sharma (55yo)

    Executive Director

    • Tenure: 10.5yrs
    • Compensation: ₹17.74m
  • Milind Puranik

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹2.43m
  • Aankur Patni (48yo)

    Executive Director

    • Tenure: 10.5yrs
    • Compensation: ₹17.41m
  • Nandkumar Ranadive

    Executive Vice President of Finance

    • Tenure: 0yrs
    • Compensation: ₹6.49m
  • Ajay Popat

    President of Corporate Diversification

    • Tenure: 0yrs
  • S. Mehendale

    Executive Vice President of Resin & Membrane Division

    • Tenure: 0yrs
  • S. Iyengar

    Executive Vice President of Medium Industry Segment

    • Tenure: 0yrs
  • Prashant Chitnis

    Senior Vice President of Technology

    • Tenure: 0yrs
  • Shashikant Raut

    Vice President of Projects & Sales

    • Tenure: 0yrs

Board Members

  • Thekkekara Meloth Nambiar (82yo)

    Independent Non-Executive Director

    • Tenure: 16.8yrs
    • Compensation: ₹1.43m
  • Rajesh Sharma (65yo)

    Executive Chairman & MD

    • Tenure: 14.5yrs
    • Compensation: ₹40.92m
  • Parthasarathy Kumar (81yo)

    Independent Non-Executive Director

    • Tenure: 14.6yrs
    • Compensation: ₹1.28m
  • Dinesh Sharma (55yo)

    Executive Director

    • Tenure: 10.5yrs
    • Compensation: ₹17.74m
  • Mahabir Patni (74yo)

    Non-Executive Director

    • Tenure: 18.1yrs
    • Compensation: ₹1.35m
  • Aankur Patni (48yo)

    Executive Director

    • Tenure: 10.5yrs
    • Compensation: ₹17.41m
  • Vijay Gupchup (82yo)

    Independent Non-Executive Director

    • Tenure: 24.3yrs
    • Compensation: ₹1.59m
  • Abhiram Seth (68yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: ₹1.48m
  • Kishori Udeshi (76yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: ₹1.39m
  • Shishir Tamotia (70yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: ₹1.33m

Company Information

Ion Exchange (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ion Exchange (India) Limited
  • Ticker: 500214
  • Exchange: BSE
  • Founded: 1964
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: ₹7.632b
  • Shares outstanding: 11.57m
  • Website: https://www.ionindia.com

Location

  • Ion Exchange (India) Limited
  • Ion House
  • Dr. E. Moses Road
  • Mumbai
  • Maharashtra
  • 400011
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500214BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2001

Biography

Ion Exchange (India) Limited, together with its subsidiaries, provides water and environment management solutions in India. The company operates in three segments: Engineering, Chemicals, and Consumer Prod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:35
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.