Best Waste Management and Recycling Stocks in Nov 2024 – Based on 1 Yr Return

In recent years, the need for sustainable practices in managing waste and promoting recycling has become critical in India. Growing environmental concerns, strict regulations, and increased public awareness have driven demand for efficient waste management and recycling solutions. 

As a result, waste management companies in India are not only playing a vital role in environmental sustainability but have also become attractive investment options. If you’re considering adding green stocks to your portfolio, here are some top waste management and recycling companies in India to watch out for.

Best Waste Management Stocks in India Nov 2024 

Note: The best waste management stocks listed in November in India here are sorted as per the market cap as of October 31, 2024. 

1. Va Tech Wabag Ltd

Va Tech Wabag Ltd is a major player in water management, specialising in wastewater treatment solutions for municipal and industrial clients. With India’s focus on water conservation, the company has benefited from the increasing demand for sustainable solutions. Va Tech Wabag boasts a 1-year return of 262.01% and a healthy ROCE of 16.58%. Although its PE ratio of 43.10 is higher, its growth potential in water management keeps it attractive to long-term investors.

2. Ion Exchange (India) Ltd

Ion Exchange is an established name in environmental services, offering water and wastewater treatment solutions, air pollution control, and waste management. Its diversified services cater to industrial and municipal sectors, helping meet India’s environmental regulations. The stock has a 1-year return of 23.19%, while a solid ROCE of 24.06% showcases its operational efficiency. At a PE ratio of 41.92, Ion Exchange can be considered as a good option for investors looking at sustainable stocks.

3. EMS Ltd

EMS Ltd operates within the construction and engineering sectors, focusing on water and wastewater infrastructure. Besides a high net profit margin of 18.83%, EMS has delivered a significant 1-year return of 166.14%. With a PE ratio of 28.80 and ROCE of 24.18%, the company can be considered a good investment option in India’s growing water management market.

4. Antony Waste Handling Cell Ltd

Antony Waste Handling Cell Ltd is a leader in India’s waste collection, processing, and disposal services. Its comprehensive services cover every stage of waste management, meeting India’s growing demand for sustainable urban solutions. The stock has posted a 1-year return of 94.52%, reflecting investor confidence. Although its ROCE is relatively lower at 13.02%, Antony Waste is continuously expanding, which could position it as an option for long-term investments in the waste management space.

5. Eco Recycling Ltd

Eco Recycling Ltd stands out in the waste management industry with its focus on e-waste recycling. The company is well-placed for future growth due to the increasing importance of responsible electronic disposal. Eco Recycling has captured investor attention with a 1-year return of 258.21%. Its net profit margin of 50.55% is impressive, but a high PE ratio of 100.37 suggests a premium valuation.

6. Nupur Recyclers Ltd

Nupur Recyclers is focused on recycling metals like lead and aluminium, making it a key player in India’s metal recycling industry. Despite a high PE ratio of 108.38, the stock has shown a strong 1-year return of 88.06%. The company’s ROCE of 12.84% is modest, but its presence in the sustainable metal sector gives it a unique appeal. 

7. Baheti Recycling Industries Ltd

Baheti Recycling Industries specialises in aluminium recycling, offering sustainable metal solutions to meet rising demand. The stock has an impressive 1-year return of 101.38% and a high ROCE of 36.85%, indicating efficient capital use. While the net profit margin is only 1.68%, growth-focused investors can track the stock for its strong market performance. Baheti’s focus on aluminium recycling positions it as an option for investing in environmentally responsible metal recycling.

8. Namo eWaste Management Ltd

Namo eWaste Management Ltd focuses on the disposal and recycling of electronic waste, a growing issue in India’s digital economy. Despite a modest 1-year return of 5.04%, the company has a healthy ROCE of 26.96%, showcasing its efficient capital management. The stock’s PE ratio of 59.72 reflects its growth potential within the e-waste segment. Investors aiming for exposure in the electronic waste sector can further research Namo eWaste to see if it aligns with their objectives and expectations.

9. Siyaram Recycling Industries Ltd

Siyaram Recycling Industries operates in recycling and facilities services, focusing on sustainable solutions for various waste types. The stock has posted an impressive 1-year return of 171.77%, drawing significant investor interest. Its ROCE of 21.34% suggests solid operational efficiency. With a PE ratio of 39.28, Siyaram’s affordable price and strong market performance can make it a good option for investors interested in value stocks within the recycling and waste management industry.

10. Urban Enviro Waste Management Ltd

Urban Enviro Waste Management Ltd offers comprehensive waste management services, helping cities manage waste more effectively. The company’s ROCE of 28.44% and a 1-year return of 141.11% make it a robust option for investors. With a PE ratio of 31.91, Urban Enviro balances growth and affordability, making it an appealing choice in the environmental services sector. Its focus on urban waste management aligns with India’s rapid urbanisation, offering investors long-term growth potential.

Waste Management Industry in India

The India Waste Management Market, valued at USD 12.3 billion in 2022, is projected to grow to USD 21.7 billion by 2032, with a CAGR of 6.50%. Key drivers include increasing environmental awareness, rapid urbanisation, and industrialisation, which lead to a surge in waste generation. 

The market is segmented by waste type, with industrial waste dominating and municipal solid waste growing at the highest rate due to urbanisation and government initiatives. Landfilling remains the primary disposal method, though incineration is gaining traction. Public ownership dominates, but private sector participation is rapidly increasing.

Conclusion

Investing in waste management and recycling stocks in India offers a pathway to support sustainability while potentially achieving significant returns. Companies like Va Tech Wabag and Eco Recycling are leading the way so investors can find opportunities in this essential industry. As environmental concerns grow, these companies are well-positioned to thrive, making them attractive options for long-term investment strategies focused on sustainability and responsible practices.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.