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Top 5 water stocks to buy in 2024

stock market
09 Jul 20246 mins readBy MOFSL

Introduction

Looking for new stocks to invest in? Think water. Water scarcity is an ever-growing crisis every country is tackling currently. India, keeping up with the world, is focusing on solving this problem. Water, as we know it, has many implications. It is used in multiple industries. Limited access to water affects a chain of businesses, which, in turn, impacts the economy and our survival. However, climate change and pollution have led us to grapple with this valuable resource.

India, like the rest of the world, is working on creating sustainable water management systems. Many businesses are taking up initiatives to help the cause. Some efforts include seawater treatment, improving water infrastructure, investing in quality equipment and pumps, etc.

As many companies are participating in the water-related crisis, the stock market is booming with new investment possibilities. If you want to benefit from this sector and invest in water stocks, keep reading.

Top Indian water stocks to buy in 2024 

The top-ranking companies in water treatment and infrastructure segment of India as of 2024 are as under:

  • Welspun Corp Ltd:

Welspun Corp Ltd is comes under the Welspun group. It is solving water sourcing solutions in three countries - the United States, Saudi Arabia, and India. Its end-to-end pipe solutions, with the new introduction of Ductile iron pipes in 2020, act as a step towards water infrastructural growth across countries, including India. Besides achievements in pipe solutions, Welspun Corp has also undertaken projects for building materials.

The stock price of Welspun Corp was Rs. 556.80 on 1st July 2024. Its market capitalisation was up to Rs. 15,532 crores, with Rs. 18.17 as earnings per share and a Profit/Expense ratio of 32.61. 

  • Thermax Ltd:

Thermax Ltd is a company geared towards creating sustainable solutions. It has various verticals, including heaters & boilers, process heating, solar power, and more. Water & Water Solutions is one among them. Under this segment, the company supports the biggest industrial and commercial establishments in the country. It helps them treat water for their processes and clean sewage and other discharge points.

Thermax Ltd holds a share price of Rs. 5298.15 on 1st July 2024. The company's market capitalisation was Rs. 59.092.2 crore and the P/E ratio of 144.91 with Rs. 36.58 as earnings per share.

  • Ion Exchange (India) Ltd:

Ion Exchange (India) Ltd provides complete water management solutions with over 60+years of legacy. It has laid out production, sales, as well as service footprints across the world. Being a first big player in water treatment within India, the company addresses water treatment needs in homes, communities, institutions, and industries. Its all-around water management solution covers raw water treatment, desalination, cleaning of urban drinking water, and more.

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The company's share price was at Rs. 663.45 on 1st July 2024. Its market capitalisation reached Rs. 9,757 crores, while the P/E ratio was 46.89 and earnings per share 13.92.

  • Va Tech Wabag Ltd

With a history of 99+ years, The Wabag Group is today the leading player in pure water technology globally. It has 6500+ plans that cater to different water treatment solutions. The comprehensive water treatment initiatives of Va Tech Wabag Ltd comprise water reclamation, desalination, drinking water treatment, sludge check and energy recovery, and operation & maintenance.

VA Tech Wabag Ltd.'s share price as of 1st July 2024 was Rs. 1328.40. The company's market capitalisation was Rs. 8,260. The earnings per share was 37. 92 and P/E ratio or 34.49. 

  • EMS Ltd 

EMS Ltd is an EPC company. With headquarters in Delhi, the company has expertise in overall water management. The services include collection, disposal, and treatment of water and wastewater. It also manages the installation of facilities for achieving water sustainability. Since its establishment in 1998, EMS has grown with a vision of promoting a green and clean environment. Since its inception, it has completed 50+ projects, set up 1000+ km sewage pipelines, and treated 250+ billion litres of sewage.

EMS Ltd.'s share price was Rs. 679.60 on 1st July 2024. Its market capitalisation was worth Rs. 3,764, with a Profit/Expense ratio of 24.70 and per share earnings of 27.  

Conclusion

The water sector may seem like a suitable sector to invest in the current and future market scenario. The government also supports these companies as they drive development and sustainability. This is the time to leverage the opportunity water company stocks present. However, thorough research on these companies and your judgement based on your goals and risk appetite is critical. You can conduct an in-depth study on their past performance and future projections to make an informed decision.

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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