Multibagger stock: ION Exchange shares in focus on favourable verdict in arbitration case

Shares of ION Exchange (India) Ltd would be in focus on Wednesday morning after the company received a favourable verdict in an arbitration case filed by Ethigen Inc against the company. To recall, Ethigen Inc had filed an arbitration claim of $18,00,000 or Rs 149.56 crore for damages against the company at the International Chamber of Commerce (ICC) alleging the wrongful termination and breach of terms of the agreement by Ion Exchange (India) Limited.

The ICC tribunal has delivered the arbitration award, wherein the ICC tribunal  rejected Ethingen’s claim for damages against ION Exchange and also rejected all other claims and requests of the parties.

Shares of multibagger ION Exchange closed at Rs 572.20 on Tuesday, up 3.56 per cent. The company commanded a market capitalisation of Rs 8,494.93 crore. The Mukul Mahavir Agrawal portfolio stock is up 108 per cent this calendar. Agrawal held 18,00,000 shares or 1.23 per cent stake in this company at the end of September quarter.

For the September quarter, ION Exchange reported a consolidated operating income of Rs 533 crore, an increase of around 19 per cent year-on-year on a consolidated basis. Ebitda was reported at Rs 60.4 crore, an increase of around 13 per cent year-on-year while the Ebitda margin stood at 11.33 per cent. The company reported a net profit of Rs 42.40 crore, up 10 per cent year-on-year. PAT margin for the quarter stood at around 7.95 per cent.

The company management in its conference call said engineering segment recorded improved volumes in the second

quarter on the back of a healthy order backlog. The execution of the large EPC jobs, including the UP Jal Nigam order is expected to further pick up pace in the second half of the year. Regarding the Sri Lanka order, the work continues albeit at a limited space and that the management is targeting project closure by financial year 23-24 end. The company said it continued to monitor the impending threat of input price increases due to uncertainties in the global geopolitical situation.

The company's merger application in respect of its Indian subsidiary companies with the parent holding company have been filed with the competent authorities and the same are under process, the management said last month.

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