Shares of Ion Exchange (India) Ltd rallied 5.82% on Tuesday’s trades to reach a 52-week high of ₹ 4172.65 apiece on the National Stock Exchange (NSE). Its shares closed at ₹ 4145.05 apiece.
The company is engaged in a wide range of solutions across the water cycle from pre-treatment to process water treatment, wastewater treatment, recycling, zero liquid discharge, sewage treatment, packaged drinking water, seawater desalination and so on.
Ion Exchange’s share price rose from ₹ 1936.30 apiece to the current level, delivering multibagger returns of 114.04 per cent. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holding would have been ₹ 2.14 lakh today.
In an exchange filing, the company said that its board has approved the split/ sub-division of its shares in the ratio of 1:10. Therefore each share with a face value of ₹ 10 each will be divided into ten shares with a face value of ₹ 1 per share. It has fixed Monday, June 12th as the record date for the purpose of subdivision of its shares.
A stock split increases the number of shares that are outstanding, by issuing more shares to the current shareholders. It decreases the market price of the individual shares, however, does not result in changing the market capitalization of the company.
The company’s net profit for the January to March quarter (Q4FY23) declined by 2.42% and came in at ₹ 81.19 crores against ₹ 83.20 crores in the corresponding quarter of the previous fiscal (Q4FY23). However, its revenue increased by 30.45% to ₹ 647.48 crores in (Q4FY23) against ₹496.36 crores reported in the corresponding period of the previous year.
For the entire year (FY23), the company’s net profit grew by 20.58% to ₹ 194.96 crore against ₹ 161.69 crore in the previous year (FY22). Its revenue increased by 26.17% to ₹ 1989.61 crores in FY23, against ₹ 1576.87 crores in FY22.
Ion Exchange is a small-cap stock with a market capitalization of ₹ 4,847. It has a good return on equity of 26.42% and an ideal debt-to-equity ratio of 0.07.
Written By Simran Bafna
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