The Indian waste management market is expected to grow substantially, with projections indicating a market size of nearly $12.9 billion in 2024, potentially reaching $17.3 billion by 2029, reflecting a CAGR of 6.1 percent.
Presently, the waste generation stands at about 62 million tons annually, with expectations that this will rise to 165 million tons by 2030 due to urbanisation and population growth.
Rapid urbanisation is leading to higher waste generation rates, with urban areas projected to produce about 0.7 kg of waste per person per day by 2025, significantly impacting municipal solid waste management systems.
Following are the two waste management stocks held by ace investors:
Tinna Rubber and Infrastructure Limited
With a market cap of Rs. 2,596.8 crores, the shares of one of the largest recyclers of End of Life Tyres (ELT) in Asia moved down by 1.7 percent on BSE and closed in the red at Rs. 1,516 on Friday.
As of June 2024 shareholding data available with the BSE, the ace investor Dolly Khanna holds nearly 1.76 lakhs equity shares, representing a 1.03 percent stake, in the company.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 70 percent from Rs. 80 crores in Q1 FY24 to Rs. 136 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 7 crores to Rs. 16 crores, indicating a rise of nearly 128.6 percent YoY.
In addition, the company has maintained better margins over the years. In FY24, the company reported a net profit margin of 10.49 percent and an operating margin of 15.84 percent.
The stock has delivered multibagger returns of nearly 231 percent in the last one year, as well as around 164 percent returns year-to-date.
Founded in 1977, Tinna Rubber & Infrastructure Limited is primarily engaged in the recycling of waste tyres/end-of-life tyres (ELT) and the manufacturing of value-added products.
The company manufactures crumb rubber, crumb rubber modifier (CRM), crumb rubber modified bitumen (CRMB), polymer modified bitumen (PMB), bitumen emulsion, reclaimed rubber/ ultrafine crumb rubber compound, cut wire shots, polymer composites etc.
The products are primarily used for making/repairing roads, tyres and the auto parts industry.
VA Tech Wabag Limited
With a market cap of Rs. 9,361.8 crores, the shares of a global leader in the water industry surged 4.8 percent on BSE to Rs. 1,539.5 on Friday.
As of June 2024 shareholding data available with the BSE, the ace investor Rekha Jhunjhunwala holds 50 lakhs equity shares, representing an 8.04 percent stake, in the company.
The company’s revenue from operations stood at Rs. 626 crores in Q1FY25, rising by 13.2 percent YoY from Rs. 553 crores in Q1FY24, and the net profit grew by 10 percent to Rs. 55 crores from Rs. 50 crores, during the same period.
The company witnessed a net profit margin of 9.09 percent in FY24 increasing from 0.05 percent in FY23 and an operating margin of 14.37 percent rising from 12.24 percent, over the same period.
The stock has delivered multibagger returns of nearly 230 percent in the last one year, as well as around 136 percent returns year-to-date.
VA Tech Wabag Limited is engaged in the design, supply, installation, construction, O&M of drinking water, wastewater treatment, industrial water treatment and desalination plants including the production of energy from biogas and sludge management.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
