Ion Exchange well placed to take advantage of growing concern over clean water. Benefits from negative China sentiment

Distress valuations for Just Dial provides investment opportunity, however question marks remain on the sustainability of the business model
August 22, 2020
Low profile ISGEC Heavy Engineering may surprise with outperformance vis-a-vis its peer group. Order book position provides earnings visibility
August 31, 2020

Ion Exchange a mid sized water management company. It has 3 major divisions – engineering project for water and waste water management, chemicals and resins business which find application in water treatment and consumer products for water purification and softening. The company has been around for decades, but growth has been subdued. Recent government focus on water management and management efforts to grow the business has resulted in good recent performance. We expect this to sustain into the near future, which is why we have a over weight rating. Major risk factor is slow down in order flow for its largest division engineering projects. Covid-19 pandemic has impacted revenues but deep cost reduction has enabled profit growth – 28-08-2020 Price: 782.35 Rating: Over Weight Recommendation : Buy

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