Is Water Treatment the new Trend for Future?
The water crisis in India poses a significant challenge to sustainable growth and must be addressed urgently. India's urbanization and industrialization have led to a significant demand for clean water, with millions lacking access and many cities facing groundwater shortages and polluted rivers. The Indian government has allocated funds for water treatment and infrastructure projects, and the market for water and waste-water treatment is estimated to grow from $1.3 billion in 2020 to $2.1 billion in 2025.
Opportunities include seawater treatment for desalination projects, zero liquid discharge for industries, and ultra-pure water for the semiconductor industry. In the long term, mega themes like semiconductors and green hydrogen will create even bigger opportunities for water treatment companies.
Best Water Treatment Stocks in India
The table below showcases the top Water Treatment stocks in India right now based on multiple factors.
| Company Name | Market Cap (in Cr) | Current Price | PE Ratio |
|---|---|---|---|
| Larsen & Toubro Ltd | ₹ 5,17,397 | ₹ 3,764 | 40.9 |
| Thermax Ltd | ₹ 49,954 | ₹ 4,192 | 91.6 |
| Praj Industries Ltd | ₹ 9,796 | ₹ 533 | 35.0 |
| Va Tech Wabag Ltd | ₹ 4,748 | ₹ 763 | 15.7 |
| Ion Exchange (India) Ltd | ₹ 7,431 | ₹ 507 | 36.4 |
An Overview on Water Treatment Sector Stocks
In the domain of Water Treatment shares in India, numerous key players have emerged that provide diverse options for investment. Here is a list of the top Water Treatment stocks in 2024
Larsen & Toubro Ltd
Larsen & Toubro Ltd is a multinational conglomerate which is primarily engaged in providing engineering, procurement and construction (EPC) solutions in key sectors such as Infrastructure, Hydrocarbon, Power, Process Industries and Defence, Information Technology and Financial Services in domestic and international markets.
L&T Construction's Water & Effluent Treatment business vertical provides state-of-the-art design, detailed engineering for Water Transmission, Treatment, Distribution and Management, Treatment to achieve Ultra-Pure Water, Industrial Effluent Treatment and Zero Liquid Discharge etc.
Thermax Ltd
Thermax Limited offers solutions to energy, environment and chemical sectors. The Company’s portfolio includes boilers and heaters, water and waste recycle plant, ion exchange resins and performance chemicals and many other services.
Thermax is a leading player in the water treatment space and the zero liquid discharge segment.
Praj Industries Ltd
Praj Industries Ltd, incorporated in 1985 and headquartered in Pune has a presence across the globe with more than 750 references in more than 75 countries. Its product portfolio is diversified into BioEnergy, Praj HiPurity Systems, Critical Process Equipment & Skids, Wastewater Treatment, and Brewery & Beverages.
Va Tech Wabag Ltd
Va Tech Wabag offers solutions for sewage water treatment, drinking water treatment, industrial water treatment, industrial waste treatment, desalination, and recycling. It has a presence across the entire value chain of water solutions which includes R&D, marketing, design & technology, engineering, procurement, construction and commissioning & operations & maintenance (O&M).
Wabag is an 100-year-old global company, stands out with its extensive experience, international presence in more than 25 countries, and strong order book. It is well-positioned to benefit from the increasing demand for water treatment solutions in India and beyond, although its financials have been flat in recent years.
Ion Exchange (India) Ltd
Ion Exchange (India) is engaged in 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.
Ion Exchange is a specialized Water Management company with more than 60 years of existence and growing revenues, generating good cash flow and profits with negligible debt.
To Sum Up
There is a potential opportunities in the water sector, specifically in the area of green hydrogen and semiconductor, which is still in its nascent stage but has significant long-term tail-wind. Current state of the water treatment industry in India relies heavily on government orders for business but we can a strong growth potential in these companies in coming future.
Note: The data is as of 30th March 2024. The list of best Water treatment stocks in India is derived from Market Cap, past perfromace, valuations and current order book. This is not a Financial Advice, please contact your financial advisor before investing or taking any trade. Team FinSort might have investments in any / all the stocks mentioned above.