Best Water Stocks in May 2025: Denta Water, Va Tech Wabag & More Based on 5-Yr CAGR, Market Cap

India is home to the world’s fifth-largest water and wastewater treatment market, valued at around $11 billion and expected to exceed $18 billion by 2026. Despite accounting for 18% of the global population, the country has access to only 4% of the world’s freshwater making water scarcity a critical concern.

To address this, the Indian government has introduced major infrastructure initiatives focused on improving water access and sanitation. 

Notable programs include the Jal Jeevan Mission, launched in 2019 to deliver tap water to all rural households by 2024, along with AMRUT, the National Mission for Clean Ganga (NMCG), and several community water projects.

These efforts are driving rapid growth in the water treatment, management, infrastructure and recycling sectors, creating opportunities for several companies. Let’s take a look at some of the best water sector stocks in India in May 2025.

Top Water Sector Stocks in May 2025 – 5 Yr CAGR Basis

Note: The stocks listed above are ranked based on 5-year CAGR as of May 5, 2025. 

Overview of the Best Water Stocks in May 2025

1. Felix Industries Ltd

Felix Industries is engaged in water and wastewater treatment in India, offering solutions such as Zero Liquid Discharge (ZLD), desalination, effluent recycling, and sludge handling. It also provides air pollution control systems and solid waste management services, making it a diversified player in the environmental services sector.

The company has delivered robust returns over the past five years, supported by strong profit margins and minimal debt levels.

Key metrics:

ROE: 23.11%

ROCE: 24.68%

2. Va Tech Wabag Ltd

Chennai-based Va Tech Wabag is one of India’s leading pure-play water technology companies, focusing on municipal and industrial water treatment in India. Its operations span over 30 countries, delivering EPC and O&M services for water purification, wastewater treatment, and desalination plants.

In FY25, the company has benefitted from strong order inflows, particularly under government-led initiatives like AMRUT and the Jal Jeevan Mission.

Key metrics:

ROE: 13.42%

ROCE: 15.29%

3. Indian Hume Pipe Company Ltd

With a legacy dating back over a century, Indian Hume Pipe is a leading player in manufacturing and laying pipelines for water supply, irrigation, and sewerage projects in India. The company benefits from steady government contracts, particularly in rural water infrastructure.

It has seen moderate but consistent growth over the years, backed by solid project execution capabilities.

Key metrics:

ROE: 9.88%

ROCE: 11.02%

Water Treatment and Management Stocks Sorted by Market Cap

Note: The list above ranks water sector stocks based on their market capitalisation as of May 5, 2025, showcasing recently listed companies in the industry.

Water Sector Related Stocks Ranked by Net Profit Margin

Note: The list above ranks water sector-related stocks based on their net profit margin, highlighting the profitability of each company as of May 5, 2025.

Conclusion

The water sector in India continues to attract attention due to its vital role in addressing the country’s water scarcity challenges. The companies discussed have shown steady growth and play an essential part in the ongoing infrastructure development.

With multiple initiatives underway, these firms are positioned in a sector with increasing demand. Investors interested in water treatment and management can find opportunities, though due diligence is always necessary.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.