Jal Jivan Mission 2.0: Apollo Pipes, Man Industries surge 7-8% today; what Choice says 

With the Cabinet officially approving the extension and restructuring of the Jal Jeevan Mission (JJM 2.0), moving the deadline to December 2028, the transition represents a massive shift from simple infrastructure creation to a citizen-centric, utility-based service delivery model, Choice Institutional Equities said on Wednesday.

Two of Choice's stock picks Man Industries (India) Ltd and Apollo Pipes climbed 7-8 per cent following the development. Apollo Pipes soared 8.13 per cent to hit a high of Rs 410.95, while Man Industries also gained 7.01 per cent to Rs 428.40.

Choice Institutional Equities said the total outlay for the mission has been significantly enhanced to Rs 8.69 lakh crore to meet 2028 goals. Central assistance, it noted, has been increased to Rs 3.59 lakh crore, an additional Rs 1.51 lakh crore over the 2019 baseline. The mission is targeting provisioning tap water connections to all 19.36 crore rural households, it added.

Choice International noted Man Industries manufactures large-diameter LSAW and HSAW steel pipes used for high-pressure transmission pipelines for oil, gas, and water projects. 

Historically the company depended heavily on oil & gas exports, but water infrastructure is becoming an important domestic demand driver, it said. 

That said, water pipeline projects have lower margins, and therefore JJM 2.0 may provide volume growth but not necessarily margin expansion, Choice Institutional Equities said.

In the case of Apollo Pipes, Choice Institutional Equities said the company manufactures PVC and CPVC pipes, HDPE piping systems and fittings & plumbing products and sits in the last-mile water distribution layer. 

"Government water infrastructure programs including JJM 2.0 are a major growth driver for the plastic pipe industry, which is expected to cross Rs 1 lakh crore by 2030. Moreover, Apollo Pipes has acquired a controlling stake in Kisan Mouldings Ltd, expanding its product portfolio and pipe distribution network, strengthening its ability to capture infrastructure demand," it said.