Ion Exchange hits new high; gains 6% in two days on securing IOCL order

Shares of Ion Exchange (India) hit a new high of Rs 2,949, up 1.5 per cent on the BSE in Tuesday’s intra-day, surging 6 per cent in past two days after the company announced securing a contract worth Rs 343.36 crore from Indian Oil Corporation (IOCL) for setting up a zero liquid discharge plant at the Panipat refinery. In comparison, the S&P BSE Sensex was down 0.41 per cent at 62,578 at 10:27 AM.

“The company has been awarded a contract by IOCL, for designing, engineering, manufacturing, supply, erection, testing, pre-commissioning, commissioning, performance guarantee test run and operation & maintenance for five years of zero liquid discharge plant at Panipat refinery at a contract value of Rs 343.36 crores including GST,” Ion Exchange said in an exchange filing on Friday. The project is to be commissioned within 16 months from the date of Letter of Acceptance, the company said.

Ion Exchange (India) offers a wide range of solutions across the water cycle from pre-treatment to process water treatment, waste water treatment, recycle, zero liquid discharge, sewage treatment, packaged drinking water, sea water desalination etc.

The company is also engaged in manufacturing resins, speciality chemicals for water and waste water treatment as well as non-water applications. The company’s water and environment management solutions extend beyond the industrial sector to homes, hotels, spas, educational institutions, hospitals, laboratories, realty sector, defense establishments and rural communities, providing safe drinking water and a clean environment.

In the past one month, the stock price of Ion Exchange has zoomed 41 per cent, as compared to 2.7 per cent rise in the S&P BSE Sensex.

Energy transition and acclimatization will be one of the pillars of the development and growth agenda in India. The Government of India has prioritized allocation of significant domestic financial resources for developing indigenous capacity for energy transition and acclimatization by providing PLI’s for domestic integrated Solar manufacturing facilities, Green Hydrogen production, blended fuel and encouraging use of biomass pellets in thermal power plants. These initiatives to reduce carbon intensity in line with COP26 commitments, augur well with large scale investments and projects.

There is a growing awareness among Corporates about the importance and benefits to integrate water sustainability into their strategy and provide proper resources for wastewater treatment, recycle and zero liquid discharge. Globally, customers are increasingly showing preference for integrated water and environment management solutions. Export of engineering products, customized EPC projects, resins, water treatment chemicals, membranes and service are important revenue generators for this sector, Ion Exchange said in its FY22 annual report.

Further, the race towards carbon neutrality, net zero goals and commitment of nations to COP26 emission goals will accelerate the demand for innovative, efficient, green technologies built on the backbone of carbon neutral water energy nexus.

All this is likely to drive demand for innovative water treatment technologies, proven EPC plus O&M capabilities. Thus the Indian water & environment industry is projected to register a healthy CAGR of 8.5 percent during the period 2022-2026, the company said.