Best Water Stocks in India For March 2025

The wastewater treatment industry is undergoing substantial growth and transformation, fueled by a combination of factors including urbanization, industrialization, regulatory requirements, and a growing awareness of environmental issues. Wastewater treatment plays a crucial role in preserving water quality, protecting public health, and maintaining aquatic ecosystems. As urban populations expand and industrial activities increase worldwide, the amount of wastewater produced is steadily rising, creating a need for more advanced treatment solutions to minimize environmental impact.

A key factor driving growth in the wastewater treatment sector is the increasing demand for efficient purification technologies that can handle a wide range of contaminants. In 2023, the water treatment market was valued at over USD 139.57 billion, and it is projected to grow at a compound annual growth rate (CAGR) of 6.23% during the forecast period. In this article, we will look at the best water stocks based on ROE.

Best Water Stocks in India Based on ROE

Note: The stocks have been selected and sorted based on ROE as of March 6, 2025

Overview of Best Water Stock

1. Enviro Infra Engineers Limited

Enviro Infra Engineers is involved in the design, construction, operation, and maintenance of water and Waste-Water Treatment Plants (WWTPs) and water supply projects (WSSPs) for government agencies/entities. Revenue from operations for Q3 FY25 stood at ₹247.45 crores, compared to ₹149.94 crores in Q3 FY24, reflecting a strong year-on-year growth of 65%. EBITDA for the quarter was ₹53.94 crores, a significant increase from ₹27.67 crores in Q3 FY24, registering a 95% year-on-year growth.

Key Metrics

• ROE: 51.95%
• ROCE: 34.5%

2. Va Tech Wabag Ltd

Va Tech Wabag Ltd is engaged in the business of water treatment field. With strong payment securities in place, the company order backlog remains solid, ensuring clear revenue visibility for the coming years. The company’s international business continues to perform well, accounting for 48% of the revenue for the first 9 months, driven by overseas projects. International projects now represent 40% of the order backlog, further reinforcing Wabag’s strong global presence.

Key Metrics

• ROE: 14.4%
• ROCE: 19.8%

3. Indian Hume Pipe Co. Ltd

Indian Hume Pipe Co. Ltd. was incorporated in 1926. The Company is in the business of manufacturing, laying and joining of pipelines. The company believes that the Urban boundaries are expanding further into peripheral areas, yet essential amenities such as water supply and drainage are not keeping up with the growing demands of urbanisation. Additionally, many rural areas in India still lack access to clean drinking water.

Key Metrics

• ROE: 10.1%
• ROCE: 13.2%

Conclusion

Investing in water stocks can be an interesting and potentially lucrative strategy, especially considering the growing importance of water resources as the global population increases and climate change impacts water availability.

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.