Water scarcity is the biggest problem we are facing in the every continent and the country across the world as it’s becoming glbal issue. Though our planet filled with 71% water, we are facing water scarcity. So now you understand that total water available on earth is not good for drinking or for other human needs. Exactly here the water treatment stocks are coming in this space to address this issue.
Now we understand how this water treatment stocks address this issue, these companies plays big role in purifying water. Cleaning the waste water and in water management system. In this space these stocks are continuously winning the big orders across the world.
Let’s understand, how it’s 100X theme:
Total water available on earth: 32.6 Cr cubic miles
Available water in oceans: 32 Cr cubic miles (97%)
Available water for human usage: 60 Lakhs cubic miles (3%)
Water locked in Glaciers & atmosphere: 50 Lakhs cubic miles (2.5%)
Now finally the water available for humans on the earth to drink, for agriculture and industrial purposes is only 10 Lakhs cubic miles which is only 0.5%.
hope now you understand exactly what is the issue and where opportunity comes for these water treatment stocks.
Necessity of water purification:
Try to understand this numbers below
Globally, for an individual person, the water needed per day is 3800 Litres. Now we have 8.1B people in the world. If you consider the average human life span as 80 years, then a person needs 1109 Liters of water for his entire life, but the fresh water available on earth is 84 lakhs of liters per person. Now understand how big is the deficit percentage.
To fill this deficit of water, different countries are following the different ways. The following ways are most important. In these our water treatment stocks are participating and getting benefitted.
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Desalination:
As most of the water locked in oceans, some Arabian countries such as Qatar, Egypt, etc are following this process which converts the salt water into fresh water, though its very expensive.
Qatar spending – $23B
Egypt spending – $3B
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Waste Water Management:
This is the process which recycles the waster water to use again. This process is widely utilizing by our country. Also the opportunity size is very big. Such countries like India and Europe are widely using this method.
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Rain Water Harvesting:
This is method where the countries will procure the fresh water from rains and store them for their utilization. Now it’s going very slowly but in future this is also a source for fresh water.
Now to fulfill their fresh water needs every country spending heavily on this sector, which is a very big opportunity for these water treatment stocks and it’s for life time and multi decadal opportunity for both companies and for the investors.
Business Opportunities for Water treatment stocks:
- As we already discussed the water scarcity across the world is the biggest opportunity.
- Also there is necessity of managing waste water as we don’t have big resources
- To become manufacturing hub, the percentage of water is heavily needed.
- The purest of the purest water needed in semi conductor manufacturing as our nation is looking into it.
- Green hydrogen theme is also needs the pure water
From these sources, the water treatment stocks is going to grab the biggest ever opportunities in long term as already journey was started ahead.
Now we look into the companies working in water treatment theme and also other companies going beneficial from this theme, will provide the companies list by their category
EPC Companies (Water Treatment Stocks):
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Va Tech Wabag Ltd
Va Tech Wabag Ltd now it’s been converted into asset light model business by moving their construction business to outsources as they just taking care of only design, supply and maintenance, which is a very good move. This company is into management of drinking water, wate water management, industrial water treatment and desalination plants.
Va Tech Wabag is one of the top 5 desalination player and 3rd largest player in the world in water sanitization. They had 1400 plants across 25 countries.
We’ve already been posted a snapshot of water treatment stocks analysis in our TWITTER HANDLE and Wabag at 661. Now it’s trading at ₹866.
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ION Exchange India Ltd
ION Exchange has 2 R&D, 7 manufacturing plants and 50+ patents in the water segment. They are claiming that their company is the one stop solution as for water and non water solutions as they are into waste water management, zero liquid discharge, packaged drinking water, sea water desalination. They also supplies some speciality chemicals for water treatment.
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EMS Ltd
EMS is also a popular EPC company, it provide design, engineering and construction services. This company has expertise in waste water management and collecting waste water. It provides it’s services for government authorities and bodies. This stock is currently trading at ₹423.
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Jash Engineering Ltd
Jash Engineering supplies various equipment to the top companies such as heavy fabricated gates, Knife gate valves, solid handling volves and other various products.
Reliance, Adani, TATA, Wabag, Thermax, Ramki, NCC, Meil and other big names will appear in the clients page, you can also have a look at the below image te get an idea. This stock is currently trading at ₹1990.
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Thermax Ltd
Thermax earning 16% of revenues from water sector by providing high purity plants, reverse mineralization plants through it’s subsidiary TSA process equipment. Thermax has plans to acquire 100% stake in TSA as currently they own 51%. Thermax is currently trading at 4582.
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Felix Industries Ltd
Felix industries provides complete water solutions and environmental solutions. They offer environmental solutions to the corporate companies and it’s currently trading at 350.
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Vishnu Praksh R Punglia Ltd
Vishnu Prakash operates in providing designing and construction of water supply projects, road projects and rail projects across 9 states in our country and it’s currently trading at 150.
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PNC Infratech Ltd
PNC Infra handles with Highways, Toll projects and industrial development projects and it’s currently trading at 434.
- NCC Ltd
- Welspun Enterprises Ltd
D.I (Ductile Iron) Pipes:
D.I Pipe companies are the biggest beneficiaries of the central government running schemes such as Jal Jeevan Mission and Mission Amrut. These two schemes aims to provide water supply through functional taps to all households in a statutory towns and coverage sewage/septage management.
Total outlay is 2,99,000 Cr including central outlay of 76,760 Crore for five years. So now we can understand the size of decadal opportunity.
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Electrosteel Casting Ltd – 171
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Jai Balaji Industries Ltd – 888
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Welspun Corp Ltd – 555
Pump Companies – Water Treatment Stocks:
Pump companies are going to hugely beneficial from PM – KUSUM Yojana, which is aimed to provide the energy security to the farmers. The below are the top benefitting companies from this scheme.
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Shakti Pumps Ltd – ₹2173
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WPIL Ltd – ₹3762
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Kirloskar Brothers – ₹1431
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KSB Ltd – ₹4562
Pipe Companies:
- Astral Ltd
- The Supreme Industries Ltd
- Finolex Ltd
- SEPC Ltd
- Prakash Pipes Ltd
- Apollo Pipes Ltd
- Texmo Pipes and Products Ltd
- Hi-Tech Pipes Ltd
- Captain Pipes Ltd
- Kisan Mouldings Ltd
3 Interesting Companies:
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Kisan Mouldings Ltd
Kisan Mouldings Ltd was recently acquired by APL Apollo tubes, which has strong management and has the capability and experience to turn the companies profitable. This is the big reason behind the buzz in the market of Kisan mouldings.
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ABM Knowledge Ltd
ABM Knowledge is the 226 cr market cap company. But looking interesting as it’s providing software solutions to the local government bodies and municipalities like billing and other software solutions.
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Praj Industries Ltd
Praj is a well known company for all of you. This company is going to be beneficial from the semi conductor industry as it supplies the technology to generate the purest of purest waater. Do watch these companies.
Conclusion:
So almost provided the complete information about this multi decadal opportunity. Now you can play this opportunity for the next two decades, that’s why we provided in depth and insightful information about water treatment stocks. If you know the proper information you won’t be afraid of short term volatility. Hope you now understand why we’ve mentioned that it’s a 100X theme.
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