INSUBCONTINENT EXCLUSIVE:
Pollution and stock investment You may be wondering we are talking chalk and cheese
A cleaner ecosystem never looked so alluring fr om stock perspective
land, water or air -- is going up by many notches
That's good news for those companies that manufacture products to contain the adverse impact of pollution.
The bottomline is this will not
Alarming air quality underscores the importance of quality products that can lead to healthy living
These can be masks, air purifiers and superior auto components for electric vehicles, to name a few.
The problem at hand is looking scary
If we look at top 20, then 10 belong to India.
The country has also recorded second highest premature deaths due to air pollution in the
world, according to State of Global Air 2017 report.
Table
Bad air is only tip of an iceberg
Solid waste management turns out to be another big headache
The mountain of trash in Delhi and its nearby areas is a classic example.
Improper management of trash poses a big threat to life too
The wounds of last year's garbage crash at East Delhi's Ghazipur landfill and its human toll are still fresh.
For equity investors, this
might be the time to take stock and consider a few options from this space that can deliver robust returns
A couple of companies dealing in eco-friendly products have also started receiving solid orders.
Hyderabad-based company Goldstone Infratech
It has reportedly beaten major producers in terms of securing orders for electric buses in the country
Buoyed by the recent success, Goldstone Infratech plans to step up its presence across India by tapping both government and private
customers in the next five years
The stock has soared over 500 per cent since January last year.
For the December quarter, Goldstone Infratech posted a net profit of Rs 6.67
crore, up 117 per cent, as against Rs 3.04 crore in the previous year.
SPML Infra, with expertise in municipal solid waste management,
effluent water treatment plants, and waste water management, has rallied nearly 100 per cent on bourses since January 2017.
G Chokkalingam,
founder, Equinomics Research and Advisory, sees select engineering companies dealing with controlling pollution to benefit.
According to the
World Bank said, individual country studies suggested that outdoor and household air pollution, lead exposure, noise issues and inadequate
water supply, sanitation and hygiene are the focal points.
Electric vehicles are the upcoming trend
The paradigm shift will undoubtedly increase demand for auto ancillaries in coming years
In fact, the automobile industry will have to line up Rs 1 lakh crore of investment to make the switch from BS IV to BS VI fuel standards,
an estimate from industry body Society of Indian Automobile Manufacturers (SIAM) showed.
Sanjeev Jain, AVP, Ashika Stock Broking, said,
indirectly with water treatment activities in India
They are involved primarily in providing safe drinking water, handling water waste, industrial and municipal, and sewage and effluent water
treatment.
Voltas jumped over 55 per cent to Rs 647.45 on April 17 from Rs 408.15 on April 17 last year
ION Exchange and Thermax rose 11 per cent and 12 per cent, respectively, during the same period
However, share price of VA Tech Wabag has dropped over 20 per cent over the last 12 months.
Government initiatives like Smart City, Yamuna
clean-up and a host of similar initiatives are only expected to provide more momentum to such players.
