Stock Market: Can waste management be next big theme?

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Plastic waste littered in New Delhi (image credit X @_NoPlasticWaste)

Plastic waste littered in New Delhi (image credit X @_NoPlasticWaste)

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Waste management business set to become $39 billion by 2030

By S Jha

New Delhi, March 30: Stock markets are playing themes globally. Artificial intelligence (AI) is leading a global equity rally. Indian stock markets are witnessing multiple themes playing out currently. Investors are wondering if waste management could be a theme to watch out for.

The waste management business size in India is currently pegged at $25 billion. The market size is likely to grow fast. The industry participants claim the waste management business size would be $39 billion by 2030. This is inviting investors to take a close look at the participants in the sector.

Waste management is also buzzing among the start ups. Hundreds of startups are addressing the challenge of waste management. From e-waste to solid waste management, startups are making a beeline to grab shares in the emerging business.

Share price of Gravita India doubled in one year. Gravita India is the largest waste management player in India. It’s now trading at a PE multiple of 30 as per Screener.

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A large number of waste management companies are reaching out to the investors through the SME IPO mode. India is tipped to become a $5 trillion economy by 2029. The expansion in the size of the economy is also likely to bring more attention to waste management.

Antony Waste is another listed company which made handsome gains on the street in the last one year. The share price of this company has also doubled in the last one year. It’s trading at a PE of 19. It is engaged in the business of mechanical sweeping of roads and also transportation of waste.

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Some of the listed firms on the stock market are as follows: PET waste recycling – Ganesha Ecosphere; Lead, Aluminum & Plastic recycling – Gravita; Battery Recycling Plant – Amara Raja and Tata Chemicals (Lithium Ion batteries); Lead Recycling — Pondy Oxides and Nile Limited; E-waste recycling —  Eco Recycling and Cerebra Integrated; Integrated waste management – Antony Waste; Water Treatment – Ion Exchange, VA Tech Wabag, and EMS Limited; Tyre recycling — Tinna Rubber and higreen carbon; and Auto shredding, Metal Scrap and ship recycling – MSTC.

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However, investors are sceptical about waste management firms’ prospects of giving good returns in a short span of time. Investors essentially stress that the share price performances of the waste management companies have been inconsistent. They also lament corporate governance issues in some of the waste management firms.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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