5 Stocks To Watch As PM Modi Launches Rs 10,000-Crore Water Sanitation Projects
Prime Minister Narendra Modi laid the foundation stone for several sanitation and cleanliness projects worth over Rs 9,600 crore.
Prime Minister Narendra Modi commemorated the 10th anniversary of the Swachh Bharat Mission on Wednesday, during the Swachh Bharat Diwas 2024 event at Vigyan Bhawan, New Delhi.
The Prime Minister laid the foundation stone for several sanitation and cleanliness projects worth over Rs 9,600 crore under AMRUT and AMRUT 2.0, National Mission for Clean Ganga and GOBARdhan Scheme.
This will include projects worth over Rs 6,800 crore, aimed at enhancing urban water and sewage systems under AMRUT and AMRUT 2.0, 10 projects worth over Rs 1,550 crore focused on improving water quality and waste management in Ganga basin areas under National Mission for Clean Ganga and 15 Compressed Biogas Plant projects worth over Rs 1,332 crore under GOBARdhan Scheme.
Key Stocks To Watch Which Focus On Water Treatment
EMS Ltd.
The company provides services from engineering and design to construction and installation of water, wastewater and domestic waste treatment facilities, generating 75% of its revenue from the water division.
The current order book stands at Rs 1,800 crore with the bid pipeline for the next eight-nine months being around Rs 4,000 crore and two-third of it from the water sector. For fiscal 2025, the company expects revenue growth of 30-35%.
Va Tech Wabag Ltd.
Engaged in the business of water treatment field, the company offers a range of solutions focused on conservation, optimisation, recycling and reuse of resources, directed at addressing water challenges across the world.
The company has an order book of approximately Rs 11,000 crore, with a mix of 55% EPC and 45% O&M. It has a preferred bidder status in several international and domestic projects valued over Rs 6,000 crore. Some key projects include 200 MLD (Million Litres Per Day) for STP Pagla project in Bangladesh, and CIDCO water treatment plant in Maharashtra.
Vishnu Prakash R Punglia Ltd.
Infrastructure development company Vishnu Prakash R Punglia operates under four business verticles—water supply projects, railway projects, road projects and irrigation network projects. Current orderbook stands at ~Rs 4,915 crore, spread across all the business segments.
The company derives 67% of its revenue from water and sanitation program vertical. This vertical also includes setting up water treatment plants along with pumping stations and laying of pipelines for supply of water.
KNR Constructions Ltd.
This Engineering, Procurement and Construction company has an established presence in irrigation and urban water infrastructure management, along with projects in roads and highways.
As of June 30, 2024, the company has a total order book position of Rs 4,922 crore. This can be bifurcated as 58% of the EPC road projects and HAM projects, whereas 20% of the total order book is for irrigation projects and balance 22% is from the pipeline projects.
Jash Engineering Ltd.
The company is manufacturing a wide range of equipment for water intake systems, water and waste water pumping stations and treatment plants, storm water pumping stations, water transmission lines. Revenue from outside India contributed to about ~ 60% of its total revenue as of the first quarter of fiscal 2025.
As of April-June quarter end, the company's consolidated order book position stood at around Rs 939 crore. In its latest conference call, the management is confident in achieving projected revenue of Rs 675-700 crore with potential for overachievement as of fiscal 2025 end.
