8.7 lakh crore Jal Jeevan Mission extended till 2028. These 25 stocks can be the biggest beneficiaries.

As many as 25 stocks across multiple sectors could emerge as major beneficiaries after the Union Cabinet approved the extension of Jal Jeevan Mission till 2028. The total cost of the program has increased to Rs. 8.69 lakh crore has been made, while the Centre’s contribution is Rs. 3.59 lakh crore to Rs.120-120 crore in Rs. The remaining funds will be provided by the state governments.

Market participants believe the move could provide a significant boost to companies linked to water infrastructure and supply chains. “This is very positive for companies in water supply management. Segments like pumps, pipes and related products will benefit. This decision reflects a shift in focus from just infra projects to services that benefit households, especially the marginal and poor. Also, freeing women from the drudgery of fetching water will increase women’s availability of Vijarkumar Vijarku Vijakurjit.”

The initiative aims to provide tap water connection to all 19.36 crore rural households across the country. Importantly, according to Choice Institutional Equities, the program now goes beyond laying pipelines to ensure continuous service delivery and system performance. The next phase is expected to introduce infrastructural improvements moving towards a utility-style model with goals of 24×7 water supply, 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: Companies likely to benefit from continued expansion and upgrading of rural water supply infrastructure under Jal Jeevan Mission. Although the program is shifting from pure infrastructure construction to service delivery, significant investments in pipeline networks will be required to connect remaining households and strengthen existing distribution systems.

In today’s session, the pipe stock rose up to 18% following the expansion. Jain Irrigation benefited, while others rose up to 6% on March 11.

Water Pump Stocks: Shakti Pump, Kirloskar Brothers, Roto Pump, EMS, Denta Water, Indian Hume, Vishnu Prakash R Punglia: As the program moves towards ensuring reliable and feasible 24×7 water supply, an efficient pumping system will be critical to lift, distribute and maintain water pressure across the network. Increases in operations and maintenance, along with utility-style management of water supply systems, may increase demand not only for new pumps, but also for upgrades, replacements, and servicing of existing equipment.

EMS was the top gainer on Wednesday, locking in a 20% upper circuit. Denta, Shakti Pumps, Roto and Indian Hume also registered double digit growth of around 17-18%.

Construction: Kalpataru Projects, KEC International, NCC, L&T, Welspun Enterprises, PNC Infratech, Dilip Buildcon, Afcons Infra, VA Tech Wabag: Extension means addition and strengthening of existing water supply network, including intake structures, treatment plants, transmission pipelines, storage reservoirs and distribution. Development ensures continued project opportunities for these companies, especially in states where coverage is still expanding or where systems need capacity augmentation and modernization.

VA Tech Wabag gained as much as 7% in the afternoon, followed by PNC Infratech which gained about 4%. Welspun, Dilip Buildcon, Fcons Infra each rose in the range of 4-5%.

Water Treatment: Ion Exchange, Thermax: This program emphasizes water quality, sustainability and long-term service delivery. Development and upgrading of water treatment plants, filtration systems and purification infrastructure may be required to ensure safe and potable drinking water throughout the rural network.

Shares in Ion Exchange rose as much as 12%, while Thermax traded more than 1% higher on Wednesday.

Starting from a baseline of 3.23 crore rural households or 17% with tap water connections in 2019, over 12.56 crore additional rural households have been provided 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, about 15.80 crore households, which is 81.61%, are reported to have tap water connections.

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