Best Waste Management and Recycling Stocks For January 2025: Eco Recycling, Baheti, Gravita and More- Based on 1-Year Return

Sustainable waste management and recycling practices have become increasingly important in India in recent years. Rising environmental concerns, stricter regulations, and greater public awareness have increased the demand for effective waste management solutions. As a result, waste management companies in India are not only contributing to environmental sustainability but also becoming appealing investment opportunities. If you’re thinking about adding green stocks to your portfolio, here are some leading waste management and recycling companies in India in January 2025 to consider.

Best Waste Management Stocks in India January 2025- Based on 1-Yr Return

Note: The best waste management stocks list in January 2025 in India here are sorted as per the 1-year return as of December 31, 2024. 

Overview of Best Waste Management Stocks in January 2025

1. Eco Recycling Ltd

Eco Recycling Ltd (Ecoreco) is India’s first and top e-waste management company. It provides complete services including reverse logistics, data destruction, IT asset disposal, e-waste recycling, lamp recycling, precious metal recovery, and the implementation of EPR and CSR programs. They also offer a service called Recycling on Wheels-SmartER.

For the quarter ending September 2024, the company reported a revenue of ₹12.87 crore, an increase from ₹11.40 crore in the previous quarter (June 2024). The net profit for the September quarter was ₹7.42 crore, slightly higher than the ₹7.41 crore recorded in June 2024. 

Key Metrics: 

• EPS (Earning Per Share): 11.65
• ROE (Return on Equity): 27.82%

2. Baheti Recycling Industries Ltd

Baheti Recycling Industries Ltd (BRIL), established in 1994, specializes in aluminum recycling. The company processes aluminium scrap into various alloys, including ingots, de-ox alloys, cubes, shots, and notch bars.

In the past 5 years, the company’s debt-to-equity ratio has been 280.4%, much higher than the industry average of 72.24%. Additionally, its current ratio, which indicates its ability to meet short-term liabilities, has been 129.28%, compared to the industry average of 148.13%.

Key Metrics: 

• ROE: 18.93%
• P/B Ratio: 4.82

3. Gravita India Ltd

Gravita India Ltd, founded in 1992, is one of the biggest lead producers in India. The company operates in four main areas: lead recycling (its main focus), aluminium recycling, plastic recycling, and turnkey projects. It also specialises in recycling used batteries, cable scrap, lead scrap, aluminium scrap, and plastic scrap.

In the quarter ending September 2024, the company reported a revenue of ₹786.30 crore, increasing from ₹757.14 crore in June 2024. The net profit for September 2024 stood at ₹50.58 crore, a significant rise from ₹35.82 crore in the previous quarter. 

Key Metrics: 

• ROCE: 27.9%
• ROE: 33.7%

4. EMS Limited

EMS Limited is an EPC company based in Delhi that offers a wide range of services in water and wastewater management. They provide complete solutions, handling everything from engineering and design to constructing and installing water, wastewater, and waste treatment plants.

For the period ending September 2024, the company reported a revenue of ₹2,316.21 million and a net profit of ₹495.32 million, compared to ₹2,037.23 million in revenue and ₹368.42 million in net profit for June 2024. 

Key Metrics: 

• EPS: 30.53
• ROE: 19.46%

5. Nupur Recyclers Ltd

Founded in 2019, Nupur Recyclers Ltd specialises in importing, processing, and trading ferrous and non-ferrous metals. The company focuses on metal scrap processing and recycling.

In the last 2 quarters, the total revenue was ₹45.33 million in June 2024 and ₹53.49 million in September 2024. EBITDA increased from ₹7.18 million in June 2024 to ₹8.21 million in September 2024.

Key Metrics: 

• P/E: 57.3
• ROCE: 13.9%

What are Waste Management Stocks?

Waste management stocks are shares in companies that offer important services like collecting, transporting, treating, and disposing of waste. These companies manage everything from everyday household waste to dangerous materials, helping keep the environment clean and healthy.

Things to Consider Before Investing in Waste Management Stocks

• Regulations: Stay updated on changing laws affecting company operations and profits.

• Financial Health: Assess stability by looking at revenue growth, profit margins, and debt levels.
• Geographic Presence: A broad market reach can reduce risks from regional economic fluctuations.

• Economic Impact: Economic slowdowns can lower waste generation, affecting profits.
• Commodity Prices: Changes in fuel and material prices can impact profit margins.
• Competition: Assess the company’s market position as competition in the industry rises.

Waste Management Market in India

By 2025, India’s waste management market is expected to reach around USD 15 billion, with an annual growth rate of about 7%.

As India’s economy grows, urban populations increase, and living standards rise, waste generation is also on the rise. With more people able to afford and access goods, waste volumes have surged. As urbanisation continues, municipal solid waste (MSW) in India is projected to double in the next decade, reaching around 80-85 million tons by 2030. This growth creates a business opportunity estimated at USD 20 billion.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.