Market participants believe the move could provide a significant boost to companies linked to water infrastructure and supply chains. “This is hugely positive for companies in water supply management. Segments like pumps, pipes and related products will benefit. This decision reflects a change of focus from exclusively infra projects to services that benefit households, particularly the marginalised and the poor. Also, relieving women from the drudgery of fetching water will enhance the availability of women’s labour,” said V K Vijayakumar of Geojit Investments.
The initiative aims to provide tap water connections to all 19.36 crore rural households across the country. Importantly, the programme is now evolving beyond merely laying pipelines to ensuring sustained service delivery and system performance, according to Choice Institutional Equities. The next phase is expected to introduce structural reforms that move towards a utility-style model with 24×7 water supply goals, along with greater focus on maintenance, monitoring and digital governance.
Here are 24 stocks that could potentially benefit from the expansion of the Jal Jeevan Mission.
Pipe stocks: Apollo Pipes, Man Industries, Astral, Finolex Industries, Prince Pipes, Supreme Industries, Jain Irrigation: The companies likely to benefit from the continued expansion and upgrading of rural water supply infrastructure under the Jal Jeevan Mission. Even though the programme is shifting from pure infrastructure creation to service delivery, significant investments will still be required in pipeline networks to connect remaining households and strengthen existing distribution systems.
In today’s session, pipe stocks have risen up to 18% following the extension. Jain Irrigation led the gains, while others rose up to 6% on March 11.
Water pump stocks: Shakti Pumps, Kirloskar Brothers, Roto pumps, EMS, Denta Water, Indian Hume, Vishnu Prakash R Punglia: As the programme moves toward ensuring reliable and potentially 24×7 water supply, efficient pumping systems will be critical for lifting, distributing and maintaining water pressure across rural networks. The increased emphasis on operation and maintenance, along with utility-style management of water supply systems, could drive demand not only for new pumps but also for upgrades, replacements and servicing of existing equipment.EMS was the top gainer, locked in a 20% upper circuit on Wednesday. Denta, Shakti Pumps, Roto, and Indian Hume also posted double digit gains of about 17-18%.
Construction: Kalpataru Projects, KEC International, NCC, L&T, Welspun Enterprises, PNC Infratech, Dilip Buildcon, Afcons Infra, VA Tech Wabag: The extension means building additional and strengthening existing water supply networks, including intake structures, treatment plants, transmission pipelines, storage reservoirs and distribution systems. The development ensures sustained project opportunities for these companies, particularly in states where coverage is still expanding or where systems require capacity augmentation and modernisation.
VA Tech Wabag rose as much as 7% in the afternoon, followed by PNC Infratech which gained about 4%. Welspun, Dilip Buildcon, Afcons Infra rallied in the range of 4-5% each.
Water treatment: Ion Exchange, Thermax: The programme places greater emphasis on water quality, sustainability and long-term service delivery. Ensuring safe and potable drinking water across rural networks could require the development and upgrading of water treatment plants, filtration systems and purification infrastructure.
Ion Exchange shares rallied as much as 12%, while Thermax traded over 1% higher on Wednesday.
Starting from a baseline of 3.23 crore rural households, or 17%, with tap water connections in 2019, more than 12.56 crore additional rural households have since been provided with tap water connections under the Jal Jeevan Mission, the government said.
At present, out of 19.36 crore rural households identified by States and Union Territories across the country, around 15.80 crore households, accounting for 81.61%, are reported to have tap water connections.
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