The idea of a circular economy is becoming more and more well-liked. Many startups are launching cutting-edge trash management solutions to turn waste into useful resources. The market is dispersed, with several companies concentrating on reducing waste, scrap oversight, and effective junk administration. The market for waste management in India is expanding.
The rise of the waste management industry has led to several top-performing waste management stocks in India. The top waste management stocks can yield great potential returns to investors.
Also read: Top Solar Energy Penny Stocks in India.
Waste management industry overview
The sector is projected to increase at a compound annual growth rate (CAGR) of 6.10% from 2024 to 2029, from a projected USD 12.90 billion in 2024 to USD 17.30 billion by 2029.
Waste creation has significantly increased due to population growth and the growing urban population, making effective and efficient waste management techniques necessary. India is one of the leading ten nations in the globe for the production of municipal solid waste (MSW) due to the rapid rise of urban population, economic expansion, and increased urban consumption patterns.
The Indian administration’s main garbage collection and control drive, the Swachh Bharat Initiative, is expected to present significant development opportunities for up-and-coming entrepreneurs focused on creative approaches. These firms give more importance to safer disposal techniques and work to create innovative scientific methodologies for handling produced garbage, focusing mostly on electronic and biological waste.
3 top waste management stocks
The sustainability and environmental protection trends will help investors reap good deals on the top waste management stocks. Based on market capitalisation, we have listed the three best waste management stocks in India.
Va Tech Wabang Ltd.
The company works in the water treatment industry. Wastewater treatment, industrial water treatment, and desalination facilities are among its main operations.
The business was awarded ₹4,400 crore to design, build, and operate the biggest 400 MLD desalination plant in South Asia. Additionally, it obtained a historic order from Bangladesh. According to GWI, the firm is the fifth-largest desalination operator in the world.
According to GWI (UK), the firm is ranked among the best three private water operators worldwide. With the largest order book historically (more than ₹ 146 billion), the firm offers strong revenue predictability.
In H1, Va Tech achieved a 5% decline in trade receivables and enhanced the collection cycle, while revenue increased by 9%. The business is still ₹ 2,220 million in net cash positive, consistent with its long-term plan.
Ion Exchange (India) Ltd.
Established in 1964, the top waste management stock is a leader in environmental, wastewater, and water treatment technologies. The firm, which has its headquarters in Mumbai, operates seven production and assembly plants around India, one in Portugal as well as one each in the United Arab Emirates, Indonesia, Bangladesh, and Saudi Arabia. It is also found in other important regions.
EMS Ltd.
With its headquarters located in Delhi, EMS Limited is a multidisciplinary EPC (Engineering, Procurement and Construction) business that concentrates on offering turnkey services for the collection, treatment, and removal of water and wastewater.
Throughout the course of the following two to three years, EMS had an outstanding order book of about ₹ 2,093 crore. Strong profitability is a defining feature of a sound financial structure.
The business operates with a significant working capital need, substantial receivables that are due throughout a period of six months, and unbilled revenues and inventories that are past due by more than 111 days. The business has an abundance of liquidity.
Also read: Top EV Battery Manufacturer Stocks to Invest in India.
Stock comparisons
| Name | P/E | Mar Cap ₹ Cr. | Div Yld % | NP Qtr. ₹Cr | Qtr Profit Var (%) | Sales Qtr. ₹ Cr. | ROCE (%) |
| Va Tech Wabang Ltd. | 43.94 | 11439.98 | 0.00 | 70.30 | 16.97 | 700.30 | 19.75 |
| Ion Exchange (India) Ltd. | 46.48 | 9990.91 | 0.23 | 50.64 | 19.57 | 644.47 | 27.49 |
| EMS Ltd. | 27.32 | 4684.35 | 0.25 | 49.65 | 9.65 | 233.47 | 29.31 |
Also read: Making Money in Stocks: A Beginner’s Guide to Investing.
Bottomline
By effectively handling and reusing waste materials, waste management stocks in India contribute significantly to the advancement of ecological stability.
Due to their ability to mitigate ecological hazards and their possibility for revenue generation, these top waste management stocks have gained prominence in recent years. Factors such as the growing urban population, environmental awareness, and stiffer restrictions from stakeholders and investors alike contributed to their exponential growth.
In a nutshell, growing consciousness of ecological responsibility and legislative actions make top waste management stocks an attractive investment option. Taking into account important financial indicators like ROE, ROCE, and sales growth, investors may profit from businesses that are selling beneath industry standards.
Furthermore, the success of smaller market-cap firms highlights the industry’s vitality and promise to promote both monetary gains and ecological responsibility.
FAQs
- Which is the biggest waste management company in India?
As per one-year return and market capitalisation, one global participant in the water treatment sector is VA Tech Wabag Ltd. The business provides full life cycle solutions. Attero and Eco-Wise Trash Management Pvt. Ltd. are two of India’s biggest trash management firms. EMS runs tertiary treatment facilities, common effluent treatment plants, and sewage treatment plants (STPs).
- What are the top 5 waste management companies?
One method to promote sustainability and maybe earn substantial profits is to invest in waste treatment and recycling stocks in India. Companies such as Va Tech Wabag and Eco Recycling are setting the standard. These businesses are in a strong position to prosper as ecological issues increase, which makes them desirable choices for long-term investing techniques centred on sustainability and ethical behaviour.
- Which is the best management waste management?
Investing in top waste management stocks in India is one way to encourage sustainability and potentially generate significant returns. Companies like Va Tech Wabag and EMS Ltd. are setting the norm to give investors opportunities in this crucial industry. These waste management stocks in India are well-positioned to thrive as environmental concerns grow, which makes them appealing options for long-term investing strategies focused on sustainability and moral conduct.
- What is the best waste management stock to buy?
The Indian economy has been doing well. While keeping a safe buffer, the stocks are rising quickly. Energy and FMCG are two industries that are predicted to do well.
India’s waste management stocks are growing quickly as a result of the increased need for environmental protection. Investors may see increased earnings as a result of this development potential.
- Can I invest in Waste Management?
With a compound annual growth rate (CAGR) of 6.50%, the waste management market in India is expected to reach USD 21.7 billion by 2032 from its 2022 valuation of USD 12.3 billion. The market is divided into waste categories, with municipal solid trash expanding at the fastest pace. Although public ownership is still predominant, private sector involvement is growing quickly. An investor in waste management stocks can gain maximum yield through these trends.
