Infra, pipes firms set to benefit as FM allocates Rs 60,000 cr to drinking water project

NEW DELHI: Even as pipe manufacturers traded flat on Tuesday after the Finance Minister Nirmala Sitharaman proposed allocating Rs 60,000 crore to the drinking water project, analysts said the project will benefit them.

“Drinking water project allocated Rs 600 billion, which is a 20 per cent hike. Beneficial for allied sectors like plastic pipes,” said Amar Ambani of Yes Securities.

Analysts at ICICI Securities also said Rs 60,000 crore allocated for Jal se Nal Yojna will be beneficial for infrastructure sector and pipe manufacturers.

Shares of major pipe stocks were, however, subdued at the time of filing this report. Astral was flat. Apollo Pipes was down 0.5 per cent and Prince Pipes slipped 0.2 per cent.

Wider plastics industry, some of which also make pipes, were mixed.

Tijaria Polypipes (up 3.92%), Shaily Engineering Plastics (up 3.24%), Kunststoffe Industries (up 3.01%), Captain pipes (up 2.93%), Finolex Industries (up 2.83%), Innovative Tech (up 2.79%), Bansal Roofing Products Ltd (up 2.34%), KKPLASTICK (up 1.95%) and OK Play India (up 1.79%) were among the top gainers.

Sri KPR Industries (down 5.73%), Gothi Plascon (India) (down 5.00%), Vinyoflex (down 4.88%), Brand Concepts (down 4.86%), Arcee Industries (down 4.83%), Multibase India (down 4.59%), Ashish Polyplast (down 4.35%), Machino Plastics (down 3.82%), and Mitsu Chem Plast (down 3.61%) were among the top losers.