With key government initiatives like the Jal Jeevan Mission aiming to provide tap water to every rural household by 2024 and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0, which targets universal water supply coverage in urban areas, the water management sector is set to experience significant growth.
According to the Ministry of Jal Shakti, as of 2024, 15.03 crore (77.83%) rural households have been provided with tap water connections, and this number is rapidly increasing.
In this evolving landscape, the water management sector is gaining increasing attention as India focuses on improving water supply, conservation, and infrastructure.
Let’s take a closer look at the best water stocks to watch in January 2025, along with key financial highlights that make them stand out in a rapidly evolving market.
| Name | Sub-Sector | Market Cap (₹ Crores) | ↓5Y CAGR (%) | Net Profit Margin (%) | 1Y Return (%) | Debt to Equity | PE Ratio |
| Shakti Pumps (India) Ltd | Industrial Machinery | 12,564.41 | 99.25 | 10.31 | 509.27 | 0.11 | 88.66 |
| Jash Engineering Ltd | Construction & Engineering | 3,539.80 | 85.17 | 12.79 | 81.08 | 0.23 | 53.02 |
| Va Tech Wabag Ltd | Water Management | 10,245.56 | 57.84 | 8.47 | 158 | 0.16 | 41.72 |
| Indian Hume Pipe Company Ltd | Water Management | 1,862.04 | 11.81 | 5.56 | 44.03 | 0.62 | 23.99 |
Note: The best water stocks listed here are as of December 31, 2024. The stocks are sorted based on their 5Y CAGR, with a debt-to-equity ratio of less than 1, positive year-to-date returns, and a positive net profit margin.
Shakti Pumps (India) Ltd, established in 1982, is a leading manufacturer of energy-efficient pumps, specialising in solar-powered and electric pumps. The company had an outstanding order book of around ₹1,800 crore as of the quarter ending September 30, 2024.
In the third quarter, Shakti Pumps (India) launched its new product, the Simha Universal Drive, and expanded its manufacturing capabilities with the inauguration of a Power Electronics products manufacturing plant.
Key Metrics:
The company specialises in manufacturing cast iron products, fabricated products, and water treatment equipment. The company’s order book remains strong at ₹873 crores, with expectations to exceed last year’s $33 million revenue.
As per news reports, Jash Engineering Ltd’s CMD expects the company to begin FY26 with an order book of ₹900 crore. For the current fiscal year, the company plans to commission new plants in Chennai and Pithampur.
Key Metrics:
WABAG is a leading global player in water treatment, specialising in sustainable solutions for water recycling, desalination, and wastewater management.
For the quarter ending September 30, 2024, the company’s order book has reached over ₹146 billion, the highest in its history, with a balanced mix of Engineering, Procurement, and Construction (EPC) and Operations and Maintenance (O&M) projects both in India and internationally.
Key Metrics:
The Indian Hume Pipe Co. Ltd. (IHP), established in 1926, specialises in manufacturing various types of pipes, including Prestressed Concrete and Steel Pipes, and executing turnkey water supply and sewerage projects.
In a recent development, the company secured a letter of intent for an EPC project worth ₹858.88 crore from Tapi Irrigation Development Corporation in Jalgaon, Maharashtra.
Key Metrics:
However, the list of top water stocks does not end here, as there are a few more recently listed companies with strong fundamentals that are on investors’ radar.
The recently listed companies—Enviro Infra Engineers Ltd,Ion Exchange (India) Ltd, and Roto Pumps Ltd—are making significant strides in the water management sector.
Enviro Infra Engineers Ltd, specialising in water management, has a market cap of ₹5,299.43 crore, with a notable debt-to-equity ratio of 0.8 and a healthy net profit margin of 14.69%.
Ion Exchange (India) Ltd, focused on environmental services, has a market cap of ₹7,875.54 crore and a relatively strong debt-to-equity ratio of 0.15, along with a solid net profit margin of 8.19%.
Lastly, Roto Pumps Ltd, with a market cap of ₹1,771.08 crore in industrial machinery, showcases a robust debt-to-equity ratio of 0.27 and a net profit margin of 14.04%.
The water management sector in India is poised for growth, driven by increasing demand for sustainable water solutions and infrastructure development. However, investors should carefully evaluate their personal financial goals, risk appetite, and investment horizon before making investment decisions. Seeking advice from a financial advisor can help ensure that investments align with long-term objectives and risk preferences.
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.
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