In today’s edition of ‘Jain Sahab Ke Gems’ show, market analyst Sandeep Jain picked a company which is a pioneer in water treatment segment. This stock has been recommended several times by him on the channel. He explains to Managing Editor Anil Singhvi why he picked it this time and what will trigger a bullish move in this stock.
Top Stocks To Buy: Ion Exchange
Jain recommended Ion Exchange, a company that is into the business of water treatment. Ion Exchange stock has been recommended by him not once but several times in this show, Jain said. This stock has been going from strength-to-strength. Ion Exchange has seen excellent transformation in terms of its balance sheet and overall aspects. The stock looks strong on technical charts and its fundamentals have improved which s reflected in its September Quarter results.
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Ion Exchange is available at a PE multiple of 12. The company’s valuations are at Rs 1,200 cr. The return on capital employed is around 32 per cent while the return on equity is around 27 per cent. The debt situation is also not very high. The profit CAGR is around 52 per cent over the last 5 years. The sales have been on the rise.
FIIs and DIIs have a holding in Ion Exchange
Ion Exchange stock is currently trading around Rs 814. It should be bought at current levels. He puts the target price between Rs 950 and Rs 970. He said that he was very bullish on the stock and said it has the capability to touch the four-figure mark.
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Jain said that Ion Exchange is quite reputed and a very old one in this segment. It is a pioneer in the industry, he added. The outlook remains positive as with industrial expansions, the demand for water purification plants will grow, Jain said.