Ion Exchange, EMS, Antony Waste zoom up to 35% post Budget. Here's why

Shares of water supply and management and waste management companies continued their upward movement as they rallied up to 16 per cent on the BSE in Friday’s intra-day trade on Budget allocation.

Among individual stocks, Ion Exchange rallied 16 per cent to Rs 767, Antony Waste Handling Cell surged 11 per cent to Rs 902.25, followed by EMS (14 per cent) and VA Tech Wabag (6 per cent to Rs 1,405).

These stocks are trading at their respective all-time highs and zoomed by up to 35 per cent in past four trading days after the Finance Minister, Nirmala Sitaraman announced Budget 2024-2025 on Tuesday.

The Finance Minister in Budget speech said the government to promote water supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable projects.

Post Budget announcement, the stock price of Antony Waste Handling Cell has zoomed 35 per cent in past four trading days. The company is leading player in the Indian Municipal Solid Waste (MSW) Management industry, providing full spectrum of MSW services which includes solid waste collection, transportation, processing and disposal services across India, majorly catering to municipalities.

Shares of EMS have zoomed 30 per cent in past four days. The stock of waste management company has rebound 122 per cent from its previous month low of Rs 392.60 touched on June 4. Currently, the stock has zoomed 314 per cent from its IPO issue price of Rs 211. EMS made stock market debut on September 21, 2023.

EMS is continuously growing at an envying pace in providing Engineering, Procurement and Contractor activities for various projects on turnkey basis. EMS specializes in executing water supply & sewerage infrastructure projects including pipeline networks, water treatment plants, sewage treatment plants, reservoirs, pump houses etc. along with complete electro-mechanical solutions.

Post Budget, shares of Ion Exchange has rallied 22 per cent. Thus far in July, it zoomed 33 per cent after the company informed that Nippon India Mutual Fund acquired an additional 0.29 per cent stake in water supply & management company between June 12, 2023 and June 26, 2024 via open market. Post acquisition, Nippon India Mutual Fund’s holding in the company increased to 5.17 per cent from 4.88 per cent.

Ion Exchange offers a wide range of solutions across the water cycle from pre-treatment to process water treatment, waste water treatment, recycle, zero liquid discharge, sewage treatment, packaged drinking water, sea water desalination etc. 

The company is also engaged in manufacturing resins, speciality chemicals for water and waste water treatment as well as non-water applications. The company’s water and environment management solutions extend beyond the industrial sector to homes, hotels, spas, educational institutions, hospitals, laboratories, realty sector, defense establishments and rural communities, providing safe drinking water and a clean environment.