Regardless of the current fall, Va Tech Wabag has delivered 104% returns over the previous 12 months, considerably outperforming the Nifty50’s almost 7% achieve.
Va Tech Wabag is buying and selling effectively above its 200-DMA, positioned at Rs 1,375, which is performing as sturdy assist, with resistance at Rs 1,650. Nilesh Jain, Vice President and Head of Fairness Analysis (Technical and Derivatives) at Centrum Broking, recommends accumulating the inventory as a positional guess.
Nevertheless, the inventory’s potential upside is predicted to be pushed extra by basic triggers than technical components, given the continuing market volatility.
Triggers for the subsequent leg of the rally
Sure Securities’ Lead Analyst, Aniket Jain, considers Va Tech Wabag’s non-binding fairness partnership with worldwide buyers to speculate as much as $100 million in a devoted “Municipal Platform” as a robust constructive.
The initiative will give attention to capital tasks within the municipal water sector.“The platform presents alternatives price $1 billion over the subsequent 3-5 years, initially specializing in tasks in India, adopted by South-East Asia and choose African markets. India is witnessing a surge in PPP-based tasks, together with Namami Gange, Yamuna cleansing, and numerous state-led initiatives below the HAM or BOT mannequin. This platform will permit VATW to broaden its order guide and bid for bigger, capital-intensive tasks with out monetary constraints, all whereas sustaining an asset-light technique,” Jain mentioned in a word.
Sure Securities reiterated a ‘Purchase’ ranking with a goal value of Rs 1,750, based mostly on an FY27 EV/EBIT a number of of roughly 16x or an FY27 PE a number of of 24x. “The a number of displays strengthening financials, anticipated income development in FY26/27, bettering margins, and free money circulation technology, coupled with a strong order pipeline,” Jain added.
Sure Securities estimates Va Tech Wabag’s FY25E web revenue at Rs 290 crore, reflecting a 16% year-on-year enhance from Rs 250 crore in FY24. Income is projected to develop 11% to Rs 3,127 crore in FY25 from Rs 2,827 crore in FY24.
For Q3 FY25, the corporate reported a 12% year-on-year rise in consolidated revenue after tax (PAT) at Rs 70 crore, in comparison with Rs 63 crore within the year-ago interval. Income elevated 17% YoY to Rs 825.8 crore within the October-December quarter.
Shares of Va Tech Wabag fell by Rs 85, or 5.5%, on the NSE at present, closing at Rs 1,480.
(Disclaimer: Suggestions, recommendations, views, and opinions expressed by specialists are their very own and don’t symbolize the views of The Financial Instances.)
