At a time when equity investors are losing millions in stock markets around the globe, ace investor Rakesh Jhunjhulwala's wealth nearly doubled as he invested in this stock.
Water management company Ion Exchange has rallied as much as 98 percent from its 52-week low of Rs 335 hit on October 31, 2018 and currently trades at Rs 664.
The smallcap stock has risen 76 percent in 2019 alone when benchmark Nifty50 lost 0.4 percent. The stock hit its 52-week high of Rs 794 per share on BSE on July 22, 2019, and the current market cap of the company stands at Rs 980 crore.
Jhunjhunwala held 8 lakh shares of Ion Exchange as of June 2019, taking his holding to 5.46 percent. He has more than doubled his stake in the company from 2.5 percent in December 2007.
The company believes the water and wastewater treatment market will continue to grow on account of an increase in demand due to rapid urbanization, curbs on water pollution and implementation of stringent effluent disposal regulations.
The government’s ‘Nal se Jal’ scheme will also increase investment in the water and sanitation sector in the next five years.
During the financial year ended March 31, 2019, the net profit of Ion Exchange rose to Rs 66.59 crore as compared to Rs 47.75 crore a year ago, showing a rise of 39.4 percent. The turnover of the company increased to Rs 1,102 crore as compared to Rs 994 crore the previous year.
According to JM Financial Institutional Equities, the 'Nal se Jal' scheme, which aims to provide piped water connection to every household by 2024, will likely lead to a massive jump in investment in water and sanitation.
The company is a leader in the Indian water treatment industry and offers total water management solutions for industry, homes, and communities.
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