Back in November last year, the central government had halted fresh funds for the Jal Jeevan Mission until states acted on widespread corruption findings. This resulted in payments for several EPC companies getting delayed. Further funds were also subjected to progress made by state governments in tackling corruption and fixing implementation gaps.
Here are some stocks that could be in the spotlight due to this move:
Kalpataru Projects
The company has a total order book of around ₹64,600 crore, of which nearly ₹8,400 crore belongs to the Jal Jeevan Mission.In its latest earnings call, the management said that the collections in its water business have started to improve, particularly from the UP Jal Jeevan Mission starting January this year. Till date, the water business has received orders worth ₹1,250 crore. The management also expressed confidence of collections improving from Q4.
KEC International
The company has an overall order book size of ₹39,300 crore, of which, ₹1,600 crore is from the Jal Jeevan Mission.
NCC
Out of the total order book size of ₹71,900 crore, the Jal Jeevan Mission’s contribution stood at ₹700 crore.Other beneficiaries in this, would include companies such as L&T, Welspun Enterprises, PNC Infratech, Dilip Buildcon, Afcons Infra.
The move is also a positive development for pump supplying companies such as Shakti Pumps, KSB, and Kirloskar Brothers, along with pipe manufacturing companies such as Finolex Industries, Astral, Prince Pipes and Supreme Industries.
