Financially strong stocks with high growth prospects typically exhibit characteristics such as robust revenue growth, strong market positions, and innovative business models. Investors often look for companies with high returns on equity, consistent earnings growth, and a significant addressable market to maximize potential returns.
Here are three such financially strong stocks with high growth potential:
Va Tech Wabag Limited
VA Tech Wabag, a specialist in water treatment and desalination solutions for municipal and industrial sectors, has completed over 6,000 projects across more than 30 countries. The company emphasizes advanced technologies in water management, delivering innovative solutions globally.
With a market capitalization of Rs.8,710 crores, Va Tech Wabag’s share price closed at Rs.1,490 per share on Friday’s trading session, rising around 6.29 percent compared to its previous close.
The company employs advanced water treatment technologies, including multi-barrier systems that combine physical, chemical, and biological processes to produce high-quality drinking water. It is renowned for its zero-liquid discharge systems and has received numerous awards for excellence in water resource management.
Currently, the company is making significant progress on the 400 MLD Desalination project in Chennai, funded by JICA, and is also advancing on the 200 MLD STP Pagla project in Bangladesh, the CIDCO water treatment plant in Maharashtra, and projects in SIBUR and Senegal.
Looking ahead, the company plans to integrate new technologies in the semiconductor and green hydrogen sectors and aims to execute 100 biogas projects in the coming years. Additionally, VA Tech Wabag has partnered with Pani Energy to implement applied AI in water treatment plants.
The company treats 27 million cubic meters of wastewater and recycles 2.7 million cubic meters daily, desalinating 1.3 million cubic meters and providing 27.5 million cubic meters of clean water each day.
It also generates over 41 MW of green energy daily, reduces greenhouse gas emissions by more than 630 tons, and saves INR 6.6 million in power costs per day.
In Q1FY25, Va Tech Wabag Ltd reported a 13.2 percent increase in revenue from operations and a 10 percent rise in net profits year-on-year. The company’s return on capital employed (ROCE) is 19.8 percent, and its return on equity (ROE) stands at 13.8 percent.
Gravita India Limited
Gravita India Limited is a leading multinational company specializing in the recycling of lead, aluminum, and plastic products, with a strong commitment to sustainability and innovation.
With a market capitalization of Rs.17,329 crores, Gravita India Limited’s share price closed at Rs.2,476.65 per share on Friday’s trading session, falling around 1.42 percent compared to its previous close.
The company is committed to environmentally sustainable practices, focusing on lead battery recycling with an annual processing of around 2,40,000 tonnes of lead-acid batteries.
Gravita’s vision for 2028 includes venturing into new recycling verticals such as lithium, steel, rubber, and paper, with targets of 25 percent volume CAGR, 35 percent profitability growth, and 25 percent return on capital employed (ROCE).
The company also aims for 50 percent of its business in value-added products and 30 percent in non-lead sectors. Priorities include judicious capital use, shareholder value creation, return-accretive growth, a 10 percent reduction in energy consumption, and 30 percent renewable power usage.
Gravita has started FY25 on a strong note, working towards expanding its capacity to over 5 lakh metric tons per annum (MTPA) with a capital expenditure exceeding Rs. 600 crore by FY27. This plan aims to achieve a capacity of over 5,00,000 MTPA by the end of FY27.
With operations across over 70 countries and customers in more than 38 countries, Gravita derives over 50 percent of its revenue from international markets.
In Q1FY25, Gravita India Ltd reported a 29.2 percent increase in revenue from operations and a 28.3 percent rise in net profits year-on-year. The company’s return on capital employed (ROCE) is 27.9 percent, and its return on equity (ROE) stands at 33.7 percent.
Tinna Rubber & Infrastructure Limited
Tinna Rubber & Infrastructure Ltd specializes in recycling end-of-life tyres into rubber and steel products, making a significant contribution to the circular economy.
With a market capitalization of Rs.2,724 crores, Tinna Rubber & Infrastructure Ltd’s share price closed at Rs.1,595 per share on Friday’s trading session, falling around 1.4 percent compared to its previous close.
Tinna Rubber & Infrastructure Ltd is a pioneer and the largest player in India for Rubberized Bitumen (CRMB), being the first to design and implement a fully automated mobile plant for bitumen modification.
The company also holds the title of the largest manufacturer of Crumb Rubber and Crumb Rubber Modifier (CRM) in India and is a leading supplier of micronized rubber powder to the tire and conveyor belt industry. Additionally, Tinna is one of Asia’s largest recyclers of end-of-life tires.
Recognized for its integrated waste tire recycling, Tinna operates facilities across multiple states, with its products used in various applications such as road construction and tire manufacturing.
The company utilizes a cutting-edge mechanical process for recycling end-of-life tires (ELT), avoiding steam to eliminate harmful emissions and effluents while retaining higher tensile strength in reclaimed rubber compared to traditional methods.
Tinna specializes in producing ultra-fine, high-structure tire crumbs (80-100 mesh), which enhance mechanical bonding in rubber compounds. The recent acquisition of Global Recycling LLC in Oman is a strategic move to boost its recycling capabilities and expand its market reach.
Additionally, the company has undertaken a significant one-time repair of its roofing infrastructure at the Wada plant to support the installation of solar panels, which are anticipated to be operational by Q2.
In Q1FY25, Tinna Rubber & Infrastructure Ltd reported a 70 percent increase in revenue from operations and a 128.6 percent rise in net profits year-on-year. The company’s return on capital employed (ROCE) is 32.6 percent, and its return on equity (ROE) stands at 36 percent.
Written by – Siddesh S Raskar
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